Volante to post $4m profit

IT services company Volante Group Limited expects to report a profit after amortisation and tax of $4 million for its financial year ending 30 June 2003, down from $4.3 million in 2002.

Corporate spending on IT remained soft during the second half with many companies deferring infrastructure projects which resulted in a year-on-year drop of $41 million in sales revenue for Volante. It did $324 million in revenue last financial year, down from $365 million in 2002.

A company restructure at the beginning of the financial year reduced the company's annualised cost base by 15 percent, improved productivity and increased customer focus, Volante said. It claimed it's a leader in the high-demand selective outsourcing market and would benefit strongly from a potential pick-up in IT spending.

During last financial year, Volante won a $12 million, four year contract with Santos Limited to provide full IT infrastructure support, and in April it won a $9.4 million three year desktop outsourcing contract with the Federal Department of Finance and Administration.

It also more recently won two $6 million infrastructure and services contracts with a business consultancy group and large insurance organisation, the company said.