Project wins net RXP Services $70.6 million in half-year results

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Project wins net RXP Services $70.6 million in half-year results
RXP Services Ross Fielding

National solutions provider RXP Services posted another successful half-year result with a total revenue of $70.6 million, a 26 percent growth from the same period last year.

The earnings before interest, tax, depreciation and amortisation (EBITDA) for the half year ending 31 December 2016 were up by 31 percent to $9.2 million.

RXP chief executive Ross Fielding said emerging technologies continued to provide his company with a platform to drive successful projects and generate strong growth. 

"Our focus on ‘design thinking and innovation’ has resulted in new client and project wins, including a number of ‘cross practice’ digital project wins during the half. It’s pleasing to see that we have been able to maintain the evolution and expansion of our specialisations in order to meet the changing demands of clients," he said.

The company's net profit after tax was up by 35 percent to $5.8 million.

Fielding also talked about RXP's investments. "We are really excited about the RXP ‘Experience Hub’ that recently opened in January, with clients already leveraging our ‘design thinking’ capabilities. By providing an innovative, user-friendly environment for our clients to work with us, we are able to better understand their needs and provide the right customised solutions," he said.

THe RXP Experience Hub is a space for clients meet with the company's specalists and collaborate in prototype ideas, test them in the UX testing lab and demonstrate to a wider audience the auditorium.

RXP expects the 2017 financial year results to remain positive. "We expect FY17 revenue growth to be at the top end of the original 10-15 percent guidance with an underlying EBITDA margin target of 13-14 percent, and we remain committed to our progressive dividend policy," Fielding added.

At the results' presentation, the company revealed its 2017 plans to leverage its IP and evolve and commercialise its own solutions, focusing on cross-practice team delivery. The company will maintain its focus on mergers and acquisitions and revealed $6.5 million of debt facility unutilised to fund future acquisitions.

RXP Services staff numbers were reduced from 779 to 742 during the period. In the previous year, the company had grown its headcount by 330, partially a result of several acquisitions.

Despite the reduction in staff, the company revealed investments in its employees through Diversity@RXP, an internal program focused on building a skilled and diverse team. The services provider also partnered with BeyondBlue to provide resilience training for staff and is investing in the development of new leadership coaching programs.

"By focusing on our people, we aim to drive long-term growth and client satisfaction," Fielding said.

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