Systems integrator SMS Management and Technology is on the lookout for acquisition targets after posting its third consecutive year of positive results.
The integrator reported a 3 percent rise in net profit to $30.6 million for FY2012, with revenue up around 10 percent to $335.5 million. It's the third year in a row SMS has posted increased profit and revenue.
SMS announced a debt-free balance sheet with $30 million cash in the bank. It spent $2 million on reducing overhead costs and signed $392 million in new contracts for the year, a 12 percent increase on 2011.
IT attributed this years’ rise to growth in the health, financial services, ICT, resources and utilities sectors, as well its expansion into Asian markets such as Hong Kong and Singapore.
ICT and financial services were the top performers in the past year, contributing 18 and 17 percent of overall revenue respectively.
The company reported that government delivered flat results, partly due to weaker public sector demand in NSW and Victoria, which it said was likely to continue.
SMS highlighted big data, cloud and mobility as areas for growth in the coming year.
With plenty of cash in the bank SMS declared that it was continuing to hunt for acquisitions, having made no purchases in the past 18 months.
In recent years it has acquired the likes of Renewtek - a software developer for IBM and Agile - as well as Microsoft SharePoint and .NET developer Microgenx.
The purchase of Renewtek had been less than plain sailing, however, according to a statement made to the ASX last year by SMS chief executive Tom Stianos.
“While the Renewtek acquisition has not delivered the desired results as early as we expected, we are now seeing increased demand for their services and remain confident of a profitable contribution from this business in 2012,” Stianos said.