SMS records 17% increase in after tax profits for half year

Staff Writers
Tuesday, 17 February 2009 16:59

IT Industry - Market

Revenue was up by seven percent to $120.8 million and net profits after tax increased by 17 percent to $12.1million for the half year to December 2008 in results just announced for SMS Management & Technology, an Australian consulting, technology and systems integration company. Tom Stianos, SMS chief executive, said the company had continued to extend and broaden its services and practices which had allowed it to contest more market segments and deliver complete end-to-end solutions for clients, resulting in an increased market share and a 7% increase in revenue.

Stianos said earnings per share grew 14% to 18.3 cents per share for the half year and directors had declared an interim fully franked dividend of 10 cents per share, maintaining the interim paid last year.

“We have updated our five year plan (previously covering 2005-2010) to take account of the
changed market conditions, with the new strategy covering the period 2009-2014 and incorporating both short and long term initiatives.

“Short term measures aim to protect the company’s strong balance sheet and cash position, reduce fixed costs and defer investments associated with more aggressive growth, and we aim to reduce operating costs by $5m during the third quarter.”

Stianos also said SMS would recruit judiciously to maintain high utilisation and profitability margins, as well as exploiting current market conditions to gain market share