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Ideas forecasts 20% profit growth for June half

Ideas forecasts 20% profit growth for June half

Enterprise IT research company Ideas International (ASX:IDE) has forecast a half-year profit growth of up to 19.5% as a result of growing demand.

The company is estimating a profit of between $825,000 and $925,000 for the six months ended June 30. This compares to profit of $744,000 in the same period last year.

Revenue is also expected to be between $4.2 million and $4.4 million, up from $4 million a year earlier.

Ideas managing director Stephen Bowhill said the performance for the half-year had been buoyed by “an IT sector that is in full health again,” resulting in strong usage of the company's services.

“The demand for... help in analysing costs and benefits of data centre equipment is strong, and we retain an ability to increase prices for our unique sets of subscriptions because most of our clients are large global companies that also benefit from a weaker US dollar,” he said.

But he cautioned of continued risks associated with the company's heavy reliance on billing in non-Australian currencies.

The anticipated improvement is also smaller in scale than the 83% profit growth of the prior corresponding period.

Ideas is currently investing in new research areas, including cloud computing, Bowhill said.

The company is in the process of deploying a new product, Ideas Advantage, a service to help IT buyers assess and choose server and storage products.

The company plans to develop Total Cost of Ownership (TCO) tools using the IDEAS Advantage service soon, Bowhill added.

IDE shares grew 4.65% in Tuesday's trading to $0.900.

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