DWS boasts mini-revival after two bad years

National services provider DWS has shown a return to form, reporting a profit increase of 49 percent for the half year ending 31 December,

Profit for the six-month period grew from $5.1 million to $7.6 million. Revenue was also up by $21.4 million, or 46 percent, to $68.1 million.

DWS put the strong results down to high demand across a number of regions as well as the two major acquisitions it made in 2015.

DWS in June spent $8.5 million to buy user experience design company Symplicit. In August, DWS spent another $19.5 million to acquire a majority stake in IT consulting and procurement company Phoenix IT.

The acquisitions were also a major factor in increasing headcount to 696. DWS had brought its headcount down to 473 by the end of the 2015 financial year.

The strong results follow two years of difficulties for the ASX-listed services provider.

The company’s leadership changed hands in 2015 when chief executive Lachlan Armstrong resigned after just one year in the job. He was replaced by chairman and former chief executive Danny Wallis. Chief financial officer James Hatherley also resigned in December after two years with the company.

During the 2015 financial year, net profits dropped by 19 percent to $10.4 million. Profit had fallen another 23 percent the year beforehand. Revenue held steady at $94.6 million for fiscal year 2015, but earnings before interest, taxation, depreciation and amortisation were down $2.3 million to $15.9 million.

DWS is yet to forecast its results for the 2016 full financial year, but said it will continue to focus on margins and leverage its broader services offerings.