Harbour IT's cloud revenue powered ahead in the 2017 year as the managed service provider notched another successful year under its Canon ownership with an almost $50 million revenue result.
In its financial report lodged with corporate regular ASIC, Harbour IT added nearly $10 million in sales and touted “considerable improvement on previous years”, highlighting investments made in its cloud services product.
Harbour posted revenues of $49.5 million for the year ending 30 June 2017, up 21 percent from $40.8 million in 2016 and beating its upper forecast of $47 million. The company posted post-tax profits of $4.3 million, up from $2.3 million the prior year.
According to the directors’ report, FY2017 was a year of strong growth in cloud revenue, with strong sales in the cloud market translating to higher annuity revenues.
“The sales of cloud (hosted infrastructure services and associated managed services) have reached a point where a number of branches (NSW and Victoria) can cover their primary fixed costs from existing annuity revenue without any hardware sales,” the report read.
Harbour expects its growth to continue in 2018, and reap the benefits of investments made in previous years. The company will also look to parent company Canon to capitalise on other opportunities.
“Since joining the Canon Oceania Group in 2014 we’ve continued to see significant growth of the Harbour IT business,” Harbour IT chief executive Michael Giusti said. “In FY16-17, Harbour IT overachieved on all of their targets and are set to have another great year in FY17-18.”
Canon purchased 51 percent of Harbour IT in 2014 before raising its stake in the Sydney-headquartered MSP to complete a 100 percent acquisition of the Sydney-based IT firm earlier this year after “overachieving” in 2016.
"Since 2014 we’ve seen significant growth of the Harbour IT business. Harbour IT has exceeded all of their targets and goals and has been a great addition to the Canon Group of companies,” a Canon Oceania spokesperson said at the time.
Under Canon, Harbour IT will continue to operate as a standalone entity led by the existing management team under Giusti.
While previous chief executive Craig Bishop, who spent the past two years as a director, retired from the board earlier this year, Harbour continues to be run by head of strategic vendors and alliances Sean Bishop, general manager of sales and professional services Steve Evans, COO Josh Watts, GM of managed IT and security Sop Chen, GM of cloud services Adam Simpson and marketing manager Christine Patterson.