ASG expects to make $19M for 2009 financial year

IT services provider ASG Group Limited has released a positive guidance for the year to 30 June 2009.

The company is expecting Earnings Before Interest, Taxes, Depreciation and Amoritisation (EBITDA) for Financial Year 2009 to be at least $19 million.

This follows EBITDA of $9 million for the December half and compares to EBITDA of $16.3 million achieved in the 2008 financial year.

The forecast EBITDA for FY09 represents an increase of 16.5 percent on FY08.

Geoff Lewis, managing director at ASG, said, the positive result was driven by its asset bank of long-term, secured managed services contracts and the company's success in securing contracts with a range of new and existing clients.

"We're forecasting a robust result for the 2009 financial year due to our success in securing a number of new managed services contracts," he said.

"These contracts not only provide us with a strong revenue position for the current period but because they are multi year arrangements, they also provide ASG with revenue locked in for years to come.

"In addition, these contracts typically provide us with significant incremental revenues from additional services."

Lewis said the outlook beyond the 2009 financial year is very positive and the company is expecting double digit growth in revenue and earnings in the 2010 financial year.

"As it now stands, our contracted managed services revenue over the next four years is approximately $400 million, which is an outstanding asset bank and springboard for further investment in our business of long term contracts," he said.

"It's a model that has served ASG very well since inception, with an unfaltering track record of securing contracted revenue with blue chip corporate and government customers."

ASG recently won a three year contract with the Federal Government's Civil Aviation Safety Authority (CASA) valued at $8 million with three two year extension options potentially providing a nine year engagement.

Earlier this year, ASG announced that it had won new contracts with a range of new and existing clients with a total value of approximately $30 million including Symbion Pharmacy Services, the Department of Prime Minister and Cabinet, Airservices Australia and the National Museum of Australia.