Empired managing director Russell Baskerville said that of all contracts in a qualified pipeline of $100 million announced late last year, the company had now secured $65 million in new business contracts.
Baskerville says the contracts, secured in recent months, all represent new business and are not renewals of existing contracts, and have a high proportion of contracted recurring revenue, including a range of enhancement services.
In a statement today to the ASX, Empired (ASX:EPD) upgraded its full-year revenue guidance to include the $65 million in new contracts.
In its statement to the ASX, Empired says it will enter the FY16 year with approximately 900 staff, up from approximately 430 staff at the start of the financial year, and has a “high degree of confidence” in delivering strong revenue and earnings per share growth in the year.
Baskerville said the string of contract success and strong organic growth follows a period of rapid acquisitive expansion by Empired across the East Coast of Australia and New Zealand.
“We are delighted to see our increased scale and breadth of services position us strongly in the market to secure major new contracts in all our regions. We have secured multi-year, multi-million dollar contracts in Singapore, both the West and East Coast of Australia and in New Zealand.”
“These contracts are all annuity based managed services contracts that provide an exceptional platform for further growth into FY16 and enhance the defensible nature of our business model and revenue predictability.”
“We are focused on continuing to build our pipeline of major strategic contracts and are again expecting a high level of new contract success into the FY16 year.”
“Our acquisitions, now consolidated under the Empired brand in Australia and integrated into our mature structures, systems and processes are demonstrating very pleasing performance. We are encouraged by the high level of staff engagement across Australia and New Zealand combined with very positive feedback from many of our customers.”
Empired lists the contracts (some unnamed) with a total value of $65 million as:
• Ministry for Primary Industry - $12m contract over 6 years – To provide Empired’s proprietary Cohesion service, a cloud based records management system. Headquartered in Wellington
• Toyota Motor Corporation Australia – To provide managed services to Toyota’s core Microsoft platforms. Headquartered in Melbourne
• Professional Services Organisation – To provide managed cloud based infrastructure as a service. Headquartered in Melbourne
• Rio Tinto – $20m contract over 5 years – Application managed services for a range of technical field systems. Headquarter in Perth
• Global Oil and Gas Organisation - $10m over 3 years – Infrastructure managed services in Australia. Australian headquarters in Perth
• InterOil - $15m contract over 5 years – Infrastructure and Application managed services. Headquartered in Singapore.