DWS forecasts flat to negative 1H earnings

DWS forecasts flat to negative 1H earnings

IT services provider DWS Advanced Business Solutions (ASX:DWS) is expecting flat to negative earnings in the first half of FY11, according to CEO Danny Wallis.

In a speech to shareholders, Wallis said that the prolonged federal election, and the lingering effects of the global financial crisis, led to a degree of uncertainty across most industries.

DWS shares fell 2.98% to $1.630 in Wednesday's trading on the news.

But Wallis added that he expects its performance to improve in the second half, “on the back of a strong pipeline of work across all geographic regions.”

The company has previously indicated that it is seeing improvement across its core markets, and that it expects to benefit from this during this financial year.

Wallis said DWS remained committed to growing its business to employ 1,000 consultants by 2014.

The company's new independent non-executive director, Gary Ebeyan, will join the company within the next week, he added.

DWS' profit grew 16% in FY10 to a record $18.5 million, while revenue increased 8% to $95.7 million.

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Tags it servicesDanny WallisconsultantsDWS Advanced Business ServicesGuidanceASX:DWSServicesnced Business Solutions

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