Australia and New Zealand Perth-based tech services group Empired (EPD) has upgraded its 2015 and 2016 revenue expectations after winning a number of contracts and rapid expansion across the east coast of Australia and in NZ.
The company told the ASX yesterday in an update that it had struck $65 million in new deals recently and added the guidance upgrade follows a period of pleasing performance from its acquisitions, strong organic growth and recent contract success.
The company is now expecting 2015 revenue to be in the range of $120 million to $130 million, up from earlier guidance of $110 million to $120 million. Empired says it is confident of being in the upper end of its guidance range for 2014-15.
And it sees a further rise in financial year 2016 reported revenue which is expected to range from $155 million to $175 million, up from the previously expected $145 million to $165 million.
Empired says it has hired about 100 new staff which, while providing ‘a degree of confidence in our strategy and delivering into the FY16 year’ has affected gross margins and expenses.
The additional hires will see Empired move into the 2016 financial year with 900 staff, up about 430 from the start of this financial year.
EPD 1Y – Empired adds 100 new hires
The company said in its update yesterday that the $65 million in new contracts announced over the past few months were part of a pipeline of $100 million in large strategic contracts to be awarded by 30 June, 2015.
“Empired is delighted to confirm that all contracts that were included in the $100 million pipeline have now been awarded and that Empired has secured $65 million in contracts of the $100 million that were contested,” it said.
The company says the wins all represent new business, have a high proportion of contracted recurring revenue, and include a range of enhancement services.
Empired shares edged up a cent to 82 cents yesterday, then fell 1.2% to 80 cents at the close.