Empired sees profit turnaround
- 24 August, 2017 09:06
Russell Baskerville - Empired managing director
ASX-listed services provider, Empired (ASX:EPD) has reported a net profit turnaround from a $1.7 million loss last year, to $3.2 million for the 2017 financial year ending June 30.
Revenue was up five per cent to $167 million and EBITDA was also up 106 per cent to $15.4 million. Net debt was reduced from $30.3 million to $13.8 million, representing a material reduction in the company’s borrowings and improvements to its working capital liquidity.
The company highlighted a couple of its key growth markets during the financial year, with sales up 32 per cent in NSW and 67 per cent in Auckland.
Empired also made some changes to its US operation, which it expects will lift results in 2018.
To maintain this growth, the company plans to build upon its investments in intellectual property in managed services, mobile and cloud applications.
“Over the past year we have focused on delivering strong financial results while ensuring our services align to key growth trends in the market supported by a materially improved balance sheet,” Empired managing director, Russell Baskerville, said.
“This combined with a high level of predictable revenue will position Empired to capture market share and deliver sustainable earnings growth over the coming years.”
During 2017, Empired introduced its Business Leadership Group incorporating all of its key operational management to instil collaboration across its multiple business units and provide consistent messaging on company priorities.
As part of this, it undertook a review of its management structure and operating model, recruiting a number of key people in new roles to ensure it had adequate management coverage across all of its office locations.
“We are confident that these changes will support our ability to deliver outstanding quality as we continue to grow, building our business in all of the regions we operate,” the company said in its statement to the ASX.
Earlier this year, Empired unveiled Cohesion 365, a cloud-based enterprise content management (ECM) service targeting businesses and government agencies across Australia and New Zealand (A/NZ).
It is built on a Microsoft-based enterprise document and records management service, which was originally created by Intergen, the Kiwi provider acquired by Empired in October 2014, targeting New Zealand government customers.
Empired’s Cohesion platform grew in FY17 from 4500 to 7000 contracted users in New Zealand, and it will also be launched in the Australian market.