Australian publicly listed IT services provider Empired has flagged that it expects to see its New Zealand business, Intergen, enjoy improved growth in the second half of this financial year, led by strong business applications performance.
The rosy outlook comes as Empired’s New Zealand revenue, delivered by its Intergen operations, rose by 1 per cent, year-on-year, during the six-month period ending 31 December 2020, to A$34.6 million, compared to A$34.2 million during the same period the year prior.
At the same time, the company reported sales growth in the combined markets of New Zealand and the United States of 54 per cent, compared to the previous corresponding period, partially due to demand for business applications and digital solutions.
In the six months ending 31 December, the company’s New Zealand operations contributed 38 per cent of overall revenue, a proportional decline from the first half the prior year, during which the local footprint contributed 41 per cent, compared to the 59 per cent that came from Australia.
In November last year, Empired marked its Intergen business, which it acquired in 2014, as a bright spot across its trans-Tasman business.
Empired, across its entire group of businesses, posted a half year 2021 profit leap of 284 per cent to A$7.7 million following a long period of “disciplined” finances.
The IT services provider maintained its recent return to profit for the six months ended 2020 following prolonged cost amid the coronavirus pandemic.
Revenue was also up by 7 per cent to A$90 million, aided by the recent win of the A$60 million Western Power Infrastructure Managed Services.
Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 43 per cent to A$11.3 million or by 107 per cent to A$16.2 million with the Australian government’s JobKeeper COVID-19 wage subsidy factored in.
“Our focus has been highly centred around partnering with our clients for success through an uncertain period whilst maintaining a disciplined focus across all levels of management on financial performance,” Russell Baskerville, Empired CEO and managing director, said.
“We are delighted that this client-centred focus has been valued by our clients and is evidenced through our rapid return to growth, the performance of our major clients continuing to expand services with us and a material jump in our client net promoter score over the last 12 months.”