ASG Group lifts revenue, earnings

IT services firm posts revenue of $80.1 million in first half of 2015

ASG Group (ASX: ASZ) has posted a slight revenue increase of $80.1 million for the first half of financial year 2015, up from $79 million during the same period in 2014.

The IT services firm’s earnings before interest, tax, depreciation and amortisation (EBITDA) was $11.1 million, up from $10.7 million in the first half of 2014. This EBITDA included a $1 million profit following the sale of its Perth data centre to Vocus Communications (ASX: VOC) for $11.7 million in August 2014.

Meanwhile, net profit after tax (NPAT) was $5.7 million, up from $3.8 million last year.

ASG Group CEO Geoff Lewis said the revenue increase was due to a number of annuity contracts.

“In the past months, ASG has been awarded long term contracts valued in excess of $120 million. We continue to gain significant traction in the public sector – both state and federal,” he said in a statement to the ASX.

“The half year result highlights the underlying strength of ASG’s business model in a volatile economic. The outlook for the second half is solid, given that major new contracts have been transitioned from the capital intensive establishment phase to the delivery phase.”

In August 2014, ASG Group reported revenues of $160.1 million for the financial year 2014, an increase from 2013’s revenue of $152.5 million.

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