Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Services demand lifts SMS Management & Technology results

Strong revenue and EBITDA growth from the demand for ICT services in financial services, resources and infrastructure, transport, and utilities

IT management and services company SMS Management (ASX:SMX) has reported strong revenue and earnings growth for the full year to 30 June 2011.

The company reported revenue of $306.1 million up 23.6 per cent year on year, driven by a broader service offering, expansion into Asia and greater cross selling between its divisions.

Earnings Before Interest Tax and Amortisation (EBITDA) was $42.2 million, up 10.8 per cent year on year. The result comes despite skills shortages and cost pressures.

Total full time equivalent staff grew some 22 per cent and exceeded 1700 as at 30 June 2011. The growth was the product of a number of staff attraction, retention and development initiatives against a background of competition for skilled resources.

In an ASX release, the company said it had experienced health demand for its services in industries such as financial services, resources and infrastructure, transport and utilities.

It had also introduced an infrastructure consulting and managed service practice (IC&MS).

The company also acquired two businesses during the financial year. The first, Renewtek, offers IBM products, business process management and Agile development services. The second, Microgenx, offers Microsoft SharePoint implementation and .Net development services.

SMS chief executive, Tom Stianos, said that the Renewtek acquisition, in particular, had not performed as expected during the year.

“While the Renewtek acquisition has not delivered the desired results as early as we expected, we are now seeing increased demand for their services and remain confident of a profitable contribution from this business in 2012,” he said in an ASX statement.

Commenting on future opportunities the company said it would seek to build upon its IT consulting and development and integration strengths through moving into business process outsourcing — a market estimated to be worth $2.6 billion in Australia — and application managed services — estimated at $3.7 billion.

The company was also seeking to gain a slice of the 3.3 billion infrastructure managed services market via a new practice launched in financial year 2012.

Follow Tim Lohman on Twitter: @Tlohman

Follow Computerworld Australia on Twitter: @ComputerworldAU

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Agile, IBM, IBM Australia, Microsoft, SMS Management & Technology, SMX, Technology
References show all

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: SMS Management & Technology
Latest Blog Posts
Whitepapers
  • Keeping up With Ever-Expanding Enterprise Data - 2010 IOUG Database Growth Survey
    A majority of respondents report having performance and budget issues due to exponential data growth. Those companies with the highest rates of data growth, in fact, are eight times more likely than slow-growth sites to be seeing significant increases in their storage budgets. New processes and tools are needed to help organizations take control of the massive volumes of information now moving through their systems. The IOUG survey looked at approaches being taken by organizations to manage their growing data stores, and what still needs to be done.
    Learn more »
  • A whitepaper on Cloud Security
    Articles include: The cloud security checklist; Creating a governance framework for Cloud Security; Hackers, like vendors are embracing the cloud. Are you?; Want government cloud? Rethink security! and more. Read this whitepaper.
    Learn more »
  • Improving Productivity in the Connected Enterprise Through Collaboration
    In the market for collaborative applications, a large convergence is beginning to take hold, and the consumerization of IT is central to this movement. The technologies that people use as consumers are impacting the way employees, customers, and partners want to interact and collaborate at work. People want to take the same technology experiences that are available at home and plug them into their daily work lives. This movement is setting worker expectations as both employees and corporate consumers. Workers need to have the choice and flexibility to consume the applications they want, where they want, and on their preferred device. Read on.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Recent comments