ASG has won $220m in deals this year

ASG has won $220m in deals this year

IT services provider ASG Group (ASX:ASG) has won $220 million worth of new contracts in calendar 2010.

In a presentation at the UBS Emerging Companies Conference, the company detailed several significant wins - including multiple long-term contracts - from the year so far.

Deals won this year include a seven-year contract to provide corporate IT services for VHA, a nine-year, $41 million equipment servicing arrangement with the Department of the Prime Minister and Cabinet, and a $13 million deal with the communications ministry.

The company revealed it now earns 60% of its revenue from application and infrastructure managed services deals, 24% from application and infrastructure projects, 11% from business intelligence and 5% from consulting.

Around 43% of ASG clients are state government departments, and 19% are federal government organisations. The remaining 38% are blue-chip corporates.

ASG added that its recent acquisitions - including the purchase of SAP consulting and services provider Progress Pacific announced yesterday - should become earnings per share accretive in FY11.

The other recent purchases are"> fellow SAP firm Courtland Business Solutions and consultancy Dowling Consulting.

The ASG Group is projecting revenue growth of at least 40% in FY11, and revealed it had a pipeline of around $784 million worth of business opportunities in the financial year ahead.

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Tags it servicesASG Groupbusiness dealsASX:ASG

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