A strong first half, with record revenues and earnings sent shares of IT services company Oakton (ASX:OKN) skyward in mid-afternoon trading.

Oakton announced a half-year net profit after tax of $6.56 million for the half year ended December 2005 - a 76.08% increase on the previous corresponding period and 57.9% after restating 2004 comparatives for the adoption of Australian International Financial Reporting Standards (AIFRS). Revenue increased by 54.39% to a record $36.95 million.

Neil Wilson, Oakton’s managing director and CEO, said: “The half year result represents a strong performance and is a credit to the Oakton team who have remained focussed on developing deeper capability around our core service model and delivering significant client outcomes within an expanding share of the Australian market.”

“The geographical spread of our operations continues to broaden and make a positive contribution to our bottom line. The Sydney operations’ EBITDA increased by 81.58% from December 2004 and now represents a 35% contribution to a growing base, up from 28% for the December 2004 half. Additionally we have successfully opened our Brisbane office late in 2005. Winning a government tender soon after opening (January 2006) validates our expectations for a positive contribution from this office in its first year. We are actively pursuing local client and staff hiring opportunities as assessment of the prospective demand for our services in Brisbane is very favourable.

“Staff numbers at the end of December 2005 were 423, 134 more than December 2004. During the period we ramped up our recruitment and retention models to continue to grow our staff numbers to support the increased demand for services from our existing and new customers.”

Mr Wilson also indicated that Oakton is on the acquisition trail, searching for appropriate companies to accelerate its growth. "Oakton will use its strong, debt-free balance sheet as a vehicle for supporting possible acquisitions which we will fully integrate into the Oakton business model. Potential acquisitions should not only strengthen existing capabilities but may also provide the foundation to enable the establishment of the full range of services in other locations within the Australian marketplace.”

Oakton shares were up 22c at $2.80 with more than $500,000 of shares changing hands in mid-afternoon trading.