Amcom lifts FY11 profit 50%

Amcom (ASX:AMM) reported a 50% jump in FY11 profit, and forecast another year of double-digit growth ahead as it benefits from the growing cloud services market

Telecom service provider Amcom (ASX:AMM) grew its net profit 50% in FY11, partly due to gains from the divestment of its holding in ISP iiNet (ASX:IIN).

The company - which provides enterprise and wholesale internet, IP voice and cloud IT services – reported a profit for the year of $25.9 million.

This result includes $4.3 million worth of profit from the sale of 4.5 million iiNet shares during the year.

In June, Amcom announced it had made this sale and would seek shareholder approval to distribute its remaining 31 million IIN shares to its shareholders. Investors approved the issue last week.

Even excluding the share sale gain and Amcom's share of iiNet's earnings, Amcom's profit grew 31% to $13.8 million – roundly beating Amcom's forecast for the year of at least 25% growth.

Revenue rose 38% to $87.2 million, while EBITDA was up 29% to $28.8 million.

CEO Clive Stein forecast “double digit percentage growth” in net profit for FY12, noting that the company is “ideally positioned to exploit the rapid growth in the emerging cloud services market.”

The company declared a final dividend of 1 cent per share, taking the full-year's dividend to 1.6 cents. Amcom announced it planned to stick to a payout ratio of 50% of profit from wholly-owned operations going forward.

AMM shares grew 1.85% in Wednesday's trading to $0.275.

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