Canberra IT provider Citadel posts 500% surge in earnings

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Canberra IT provider Citadel posts 500% surge in earnings
Monash University building

Canberra-based IT provider Citadel Group has registered a 57 percent rise in revenue to hit $46.8 million for the six months to 31 December.

The company posted a 515 percent rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to $12.6 million. Net profit after tax (NPAT) also rose by 312 percent to $5.6 million.

Citadel's technology segment, which is the bulk of its business and comprises professional services and managed services, was a star performer, growing revenues by 72.9 percent to $41.5 million for the six months.

The increase was mainly attributed to a number of contracts, including a five-year technical services contract with Monash University and a videoconferencing contract to the new Royal Adelaide hospital, as well as the acquisition of Citadel Health, formerly known as PJA Solutions.

However, the company’s education arm went backwards, with revenue down 7 percent to $5.3 million and NPAT down 37.5 percent to $1 million.

“Notwithstanding our quality outcomes [in terms of both education and employment pathways] and improvements made in campus facilities, there was a decrease in revenue resulting from continuing adverse media about the vocational education sector, the conduct of certain private providers, and a concomitant changing regulatory environment, which have all impacted enrolment numbers and the cost of student acquisition,” the company said.

Citadel is a 250-staff nationwide company with a $200 million market capitalisation. Its clients includes government agencies and blue-chip private businesses. 

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