ASG forecasts strong earnings

Perth-based IT provider ASG Group expected to report sales revenue of $26 million for the half year ending December 2005, a 60 percent increase over the corresponding period.

In a statement to the ASX on Friday, the system integrator and application developer also said it would report EBITDA of about $2.7 million, an increase of more than 100 percent.

Geoff Lewis, MD and CEO at ASG, said in statement that the company’s ability to capture and support higher revenue and to produce increased earnings were attributable to the investment decisions made and implemented in FY05.

“We invested heavily in infrastructure to support anticipated expansion in business activity and the efficiencies and scale benefits are now being achieved as profits grow more quickly than turnover.”

In August, the integrator won a $2.2 million contract – via its Exceed Systems division – to replace email, file, print, management and directory services at the federal Department of Finance and Administration.

It was also sub-contracted in June by Oracle Consulting on a $67 million, 10-year contract to help deliver a shared corporate services project to the Western Australia government.

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