Spirit Telecom has claimed it is poised to increase its market share in the small and medium business IT and telco services sector after posting a bumper FY2020 result.
The company revealed that its revenue had doubled from the previous year to $34.9 million, while underlying EBITDA grew 88 percent to $3.73 million.
The growth was fuelled by its acquisition of seven companies over the 12 months ended 30 June 2020, as well as organic growth from its existing business. However the costs of the acquisitions have cost the company’s net profit, reporting a net loss of $1.5 million.
The acquisitions were part of a strategy to create an IT and telco services “one stop shop” within the Spirit X Digital Platform. The companies are Arinda IT, Phoenix Austec, Cloud BT, Trident Computer Services, Neptune Managed Services and VPD Group (Now IT Solutions and Voice, Print and Data Australia).
Speaking on the result, Spirit managing director Sol Lukatsky said, “FY20 has been a year of phenomenal growth and transformation. The July trading update shows we’re off with a fast start to FY21, and we continue to pursue an aggressive growth agenda both organically and via a range of acquisition options.”
“Having completed seven acquisitions, including material acquisitions such as VPD and Trident over the past 12 months, we’ve assembled and integrated the product suite and service delivery model that’s enabled us to become a truly modern telco and challenge the major IT and telco providers head on.
“We will continue to invest in growing the Spirit brand nationally and are committed to not only meeting but exceeding the needs of Australian businesses when it comes to their IT and Telco needs, with Spirit’s customer-focused approach.”
Looking ahead, Spirit aims to fully transition its entire cloud and IT offering onto Spirit X and expand its wholesale dealer network. It also would continue exploring potential mergers and acquisitions to fuel its ongoing growth strategy.
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