IT services provider PS&C is taking on more losses despite a boost in revenue as the costs of recent acquisitions continue to affect profitability.
The company’s losses after tax came in at $9.2 million for the year ending 30 June, up 64 percent from a $5.6 million loss last year. Revenue grew 6 percent to $78 million from $73.9 million in 2017.
During the period, PS&C acquired IT services provider Canberra-based NTH Consulting, Melbourne-based business and technology consultancy Seisma, Sacon Group and Coroma Consulting.
“Reported profit was impacted by goodwill write downs, mainly as a result of an increase in the weighted cost of capital used in the impairment testing model and a more conservative approach taken with long term forecasts,” PS&C said.
“Management remain very confident with the prospects of the existing operating units.”
The company also changed the reporting of its segments to better reflect its service offerings and delivery model.
Its People, Security and Communications business segments are replaced with Discovery + Insights, Design + Process, Delivery + Cloud and Defend + Secure.
Looking forward, PS&C said its work in the past 18 months has put the company in a strong position to be profitable, expecting a bump in EBITDA in the current financial year.
“I couldn’t be more pleased with how the group is positioned to grow profits. Considerable work has been done to put the right mixture of businesses and personnel in place to take advantage of the opportunity,” PS&C managing director Glenn Fielding said.
“We now have our house in order and further improvements will come by building on existing relationships with enterprise customers and continued consolidation of our businesses to improve client engagement.”