Within ASX-listed Empired’s improved annual result announced yesterday there was really one standout – the company’s New Zealand division, Intergen.
The New Zealand operations performed “exceptionally well” throughout the year, Empired reported, with "sector leading" revenue growth of 11 per cent to A$67.5 million, or 41 per cent of total group revenue (see chart below).
The surge was powered by both increased work for existing customers and new client wins.
Empired’s managing director and CEO, Russell Baskerville, and non-executive chair, Thomas Stianos, attributed the result to performance and growth with the Department of Internal Affairs where Intergen was delivering what it described as a large multi-year program of work.
In addition, the company undertook a major application modernisation to its real-time information for operational deployment (RIOD) solution with NZ Police and won key new contracts with telco 2degrees and Sky TV.
The RIOD project appears to be replatforming of the system to a SaaS model, according to Police disclosures. The estimated cost of the project at the end of Police's 2019 financial year were reported as just under $5 million.
“We worked closely with Microsoft where our relationship continues to expand into new services and strengthened in key client accounts,” Baskerville and Stianos said in their joint address to shareholders.
“Microsoft awarded Empired the privilege of inclusion in its most prestigious global Dynamics partner group the ‘Business Applications Inner Circle’ in both Australia and New Zealand.
“This demonstrates the ongoing strength of our relationship and provides a strong reference point for our clients.”
Microsoft Dynamics services, provided by the business applications practice, continued to see strong client demand and remained a central pillar to the group’s strategy.
“Our New Zealand business applications services revenue grew by 6 per cent in FY20 and whilst revenue in our Australian business applications practice was impacted by COVID-19 the sales pipeline is up strongly as we enter FY21.”
As reported yesterday, Empired returned to the black for the year to 30 June after vowing to cut its costs and capital investments last year to offset a A$15 million loss.
The company posted a profit after tax of A$6.1 million, up 139 per cent, despite revenue falling by six per cent to A$166 million.
Australian revenue in particular took a hit, falling by 16 per cent, with the company having lost its Main Roads WA gig, which was expected to impact its FY20 revenue by A$10 million.
EBITDA rose from A$13.8 million to A$19 million, while net debt fell from A$14 million to A$4.4 million for the year.
Empired has a team of around 1000 people across A/NZ and the US.