Growth in profits has also slowed. This year the company announced that profits for the year to the end of June were up 5 per cent to $44.3 million, where last year they rose 10.8 percent to $42.2 million.
However SMS reported that it has improved profitability during the second half of the year as a result of a programme to strip about $2 million a year of costs out of the organisation. Staff levels for the year remain largely unchanged at 1,682 after strong headcount growth of 22 per cent in 2011.
According to chief executive Tom Stianos market conditions during the year were “volatile” but the company still managed to sign $392 million worth of contracts – 12 per cent higher than the year before.
ICT remains the largest single market for the company, followed by financial services – although demand from the latter sector was down compared to the previous year. SMS noted in its annual report that State Government demand was flat, particularly in NSW and Victoria.
There were no acquisitions made during the last 18 months, but with no debt and $30 million cash in the bank the company said that it will continue to look for strategic acquisition over the next year.
It also plans to focus on a series of market “hot-spots” including big data, cloud computing, and mobility to underpin its search for growth in the current financial year. SMS, which numbers a Hong Kong based client among its five largest, also plans to grow its presence in Asia Pacific over the next year.