RXP's profit rockets 172%

National solutions provider RXP Services has reported another bumper financial result, raking in $56 million in sales over the past six months.

Revenue for the half year ending 31 December grew 54 percent, up from $36 million the previous year.

Net profit was up to $5.6 million - an increase of 172 percent. RXP chief executive Ross Fielding put the results down to strong utilisation and stable gross margins.

RXP upgraded its full-year 2016 revenue forecast from $108 million to $120 million.

“Our first half 2016 results were strong, and combined with the good start that we have seen to the second half, we are in a sound position for sustained growth across our chosen specialisations,” said Fielding.

“We have a firm commitment to ‘specialisation wins’, and working in growth areas that are relevant to our clients. The ability to evolve and grow our business organically has been a key driver to our success.”

RXP shares were trading on the ASX at 60 cents on Tuesday morning, compared to 42 cents one year ago.

The service provider also brought on 184 new staff in the six months ending December. While the bulk of the new hires came from the acquisitions of Engage Viidacom and 10Collective, around 50 new hires came organically.

The 10Collective buyout marked the 13th acquisition for RXP. Since 2014, the company has acquired Engage ViidaCom for an initial $6 million and consulting firm Centrum Systems for $4.15 million.

“The integration of Engage ViidaCom along with digital technology company 10Collective has gone very well with both delivering to plan and both providing good client and practice cross-selling opportunities,” said Fielding.

“We have also continued to develop our intellectual property-backed solutions and ‘as-a-service’ offerings over the half year. We see a number of opportunities available to re-use our IP and will continue to focus on leveraging these further."

In the 2015 financial year, the company's revenue was $78.9 million, the 42 percent growth good enough to claim number 31 in the 2015 CRN Fast50. RXP's 2016 forecast of $120 million would represent an increase of 52 percent.