Story image

Empired logs 105% EBITDA increase as NSW and Auckland sales soar

09 Aug 2017

Empired has logged a 105% increase in EBITDA on a 5% increase in revenue as Auckland and New South Wales sales soar.

The IT services provider, which counts Kiwi services provider Intergen among its businesses, recorded unaudited revenue of AU$168 million, with EBITDA of $15.4 million for the year ended June 30.

Russell Baskerville, Empired managing director, says a focus on key growth markets has delivered ‘exceptional’ results, with NSW sales up 32% and Auckland sales up 67%.

Baskerville says the result cements a successful recovery year, putting the challenges of FY16 ‘clearly behind us’ and setting a foundation for growth in FY18 and beyond.

The company headed back into the black in the first half of FY17, recording a $1.1 million net profit for the first half, after recording a net loss after tax of $1.7 million for the previous financial year.

“Underpinning a year on year growth is our recurring revenue base as well as growing revenue from multi-year contracts,” Baskerville says of the latest financial results.

Gross margins expanded from 32% in the first half to 35% in the second half, with Baskerville attributing the result to ‘disciplined contract management and improved operational systems leading to an overall increase in utilitisation’.

He says the ramp up of the company’s delivery centre in Bengaluru, significant operating leverage and a more efficient, lower cost operating model is expected to continue to deliver margin expansion over the medium term.

‘Soft’ activity in the United States dragged revenue down, though Empired says the US market returned to growth in Q4, with that growth expected to continue, based on sales activity and pipeline.

Low margin product resale also impacted revenue.

“The proliferation of digital business models heavily reliant on data analytics, modern applications and mobile devices is ever present and underpins an exciting growth opportunity for Empired for many years to come,” Baskerville says.

The company is forecasting FY18 yearnings growth with strong cash conversion underpinned by top line growth, perating leverage and expanding margins.

Why 'right to repair' legislation could be a new lease on life for broken devices
“These companies are profiting at the expense of our environment and our pocketbooks as we become a throw-away society that discards over 6 million tonnes of electronics every year.”
Attacks targeting Cisco Webex extension explode in popularity - WatchGuard
WatchGuard's Internet Security Report for Q4 2018 also finds growing use of a new sextortion phishing malware customised to individual victims.
SAS partners with NVIDIA on deep learning and computer vision
“By partnering with NVIDIA, we combine our strengths to augment human intelligence and realise the true potential of AI.” 
Why businesses must embrace automation to ensure success
“For many younger workers, the traditional view of a steady job at one company, perhaps for life, simply doesn’t reflect reality."
Dropbox invests in hosting data inside Australia
Global collaboration platform Dropbox has announced it will now host Australian customer files onshore to support its growing base in the country.
TYAN unveils new inference-optimised GPU platforms with NVIDIA T4 accelerators
“TYAN servers with NVIDIA T4 GPUs are designed to excel at all accelerated workloads, including machine learning, deep learning, and virtual desktops.”
Worldwide spending on security to reach $103.1bil in 2019 - IDC
Managed security services will be the largest technology category in 2019.
How Cognata and NVIDIA enable autonomous vehicle simulation
“Cognata and NVIDIA are creating a robust solution that will efficiently and safely accelerate autonomous vehicles’ market entry."