Mixed bag for DWS' first half

IT services company DWS has reported a 13 percent decline in net profit to $8.3 million for the first half of FY2013.

The company’s revenue rose slightly from $55.4 million to $55.2 million.

It noted an “unusual and rapid slowdown in demand for services” during the second quarter, which resulted in a number of staff redundancies across South Australia and Victoria. The company’s current staff count, including consultants, sits at 620, down from 613 in June last year. Consulting staff make up 568 of total numbers.

DWS also partly attributed the disappointng loss on its investment in a joint venture with Borealis Australia, named Borealis DWS Consulting Services, based in Queensland. The business offers environmentally responsible technology solutions to the mining, oil and gas industries. 

During the period, DWS also completed its $5.7 million cash acquisition of the business assets of Canberra-based outsourced application managed service provider Apt Business Solutions.

The company said strong demand from the banking and finance industries helped to offset weakness in other areas of the business, making up 21 percent of overall revenue compared to 15 percent in the previous corresponding quarter, second only behind government and defence.

DWS Limited has $11 million cash in the bank and zero debt. 

The company said it expects global pressures to negatively impact its second half of 2013, but with the finance, government and FMCG (fast-moving consumer goods) sectors to provide a buffer.

DSW shares were barely changed at $1.62 in early morning trade.