The advisory and technology solutions provider Atturra has announced its results for the six months to December 31, 2022 (1H FY23). The company reported that continued strong organic growth and contributions from acquired businesses drove a 34% increase in revenue to AU$82.8 million compared to the prior corresponding period (pcp).
Consolidated earnings before interest and tax (EBIT) were up 39% on the pcp to reach AU$7.7 million. In addition, the company reported a consolidated (statutory) net profit after tax of AU$4.5 million for the half (1H FY23), up 32% on the pcp.
Atturra noted 1H FY2023 results reflected strong client growth, particularly in the local government sectors, and the benefits of a diversified technology partnership strategy.
Atturra is an ASX-listed technology business providing a range of enterprise advisory, consulting, IT services and solutions focusing on local government, utilities, education, defence, the federal government, financial services, and manufacturing industries. The company partners with leading global providers, including Microsoft, Boomi, Software AG, OpenText, Smartsheet, QAD, Infor and Solace. Its clients are some of the largest public and private-sector organisations in Australia.
“The Atturra team has had an exceptional start to FY23. We have continued to see strong demand across the business, and importantly continued high team morale. Our result clearly demonstrates the inherent strength and relevance of our strategy of ensuring we have leadership positions in key technologies and industries. With the successful raise of AU$25 million in capital in December 2022, Atturra is well positioned to execute its acquisition strategy. Our acquisitions over the past couple of years have strongly contributed to our growth, and I am pleased that we are on track to complete two additional acquisitions in the near term," says Stephen Kowal, Chief Executive Officer of Atturra.
Meanwhile, Atturra has continued to grow its technology partnerships, entering into new partnership arrangements with Efficiency Leaders and Curious Thing AI. Additionally, the company was promoted to OpenText Professional Services Partner for SAP and Microsoft Solutions Partner for multiple designations within the Microsoft Cloud Partner Program.
Atturra also won multiple partner awards for its Smartsheet work during the period, including the CRN Impact Award for platform innovation and the APAC Insider Australian Made Award for best advisory and consulting company - Australia.
Atturra secured more than 45 new clients, across multiple industries, in 1H FY23.
As of December 31, 2022, the company's balance sheet was strong, with a cash position of AU$55 million and debt of AU$4.9 million.
Regarding the future outlook, Atturra has announced, as outlined in the ASX announcement on January 30, 2023, "Acquisition 03" will not proceed.
But the company remains on track to complete its acquisition of HSD in the next fourteen days, with most conditions precedent now satisfied.
Also, the due diligence for “Acquisition 01” is progressing positively, and a Share Sale and Purchase Deed is expected to be executed in the next fourteen days.
If these two acquisitions proceed, Atturra anticipates FY24 revenue in the range of AU$210 million to AU$230 million, and an underlying EBITDA (earnings before interest, taxation, depreciation and amortisation) in the range of AU$20.5 million to AU$22 million.
Revenue and underlying EBITDA forecasts are estimates only based on target representations subject to financial and other due diligence outcomes.
As both acquisitions are expected to complete in the next eight weeks, Atturra will provide updated FY23 guidance at the close of the second acquisition.
Finally, Atturra has reiterated its commitment to its strategy of achieving a sustainable underlying EBIT margin of around 9%, while continuing to invest in the growth of the business.