Cirrus Networks has returned to profitability in the first half of the financial year with strong revenue growth, thanks to contributions from its managed services business.
The Perth-based provider’s net profit after tax came in at just over $135,000 in the six months ended 31 December, compared to a loss of more than $389,000 in the previous corresponding period. Revenue meanwhile was $45.7 million for the period, up 49 percent from last year.
Revenue growth was supported by its managed services business, which contributed $4.5 million for the period, up 136 percent from last year’s $1.9 million. Product sales and professional services also saw growth from the previous corresponding period.
“The continued improvement in revenue and margins is once again very positive and demonstrates that Cirrus remains on track to deliver on our 2020 strategic goal,” Cirrus managing director Matt Sullivan said.
“The impressive 136 percent growth in managed services in particular, together with the growing contribution of our eastern seaboard businesses, demonstrates Cirrus’ evolution into a market leading and innovative IT managed service provider.”
The company also attributed contributions from its business across Australia’s eastern seaboard, delivering revenue growth of 57 percent and margins growing 75 percent for the period.
Meanwhile, profit was impacted by a one-off redundancy cost of $172,000 related to a business review and restructure, as well as other costs. Underlying profit was more than $758,000 for the period, up from last year’s $460,000.
Looking ahead, Cirrus said it is confident that it will deliver a strong second half of the financial year, thanks to a strong orderbook and a pipeline of opportunities.