ASX Announcement

Empired LogoFY17 Results 

  • Revenue $168m, up 5%
  • EBITDA $15.4m, up 105%
  • FY17 H2 EBITDA $9m, up 36% from $6.6m pcp
  • Operating cash flow $9.8m, with H2 Operating cash flow $8.9m
  • Net Debt reduced to $13.8m (Includes the re-payment of all deferred consideration by year-end)

FY17 Highlights 

  • Revenue from multi-year contracts grew to 66% of total revenue.
  • Underlying services Revenue up c10% – WA up 14%, East Coast up 6%, NZ up 11%.
  • Key growth regions ramping up with NSW sales growth of 32% and Auckland 67%.
  • Contracted Cohesion users up 56%.
  • Established an extended delivery centre in Bengaluru, India.
  • Expanding EBITDA margin from 5% to 9% with further operational leverage expected.

FY18 Outlook 

  • Expect continued market consolidation.
  • Positive growth thematic impacting broad array of industries and businesses.
  • Well placed to capture market share in circa $30+ Billion market.
  • Expect pleasing revenue growth in FY18.
  • Converting to accelerated earnings growth with strong cash conversion.
  • Pleasing start to year provides confidence in solid H1 financial result.
  • Net Debt to reduce across the year.

Commenting on the full year result Mr Baskerville said, “Over the past year we have focused on delivering strong financial results whilst ensuring our services align to key growth trends in the market supported by a materially improved balance sheet.”

“This combined with a high level of predictable revenue will position Empired to capture market share and deliver sustainable earnings growth over the coming years.”

“We were delighted with Revenue derived from multi-year contracts reaching 66% and two of our key growth markets delivering exceptional sales results with NSW sales up 32% and Auckland sales up 67%.”

“We operate in an exciting industry that is undergoing transformational change driven by rapid technology adoption.”

“Our future is bright and we thank you for your support.”

About Empired Limited

Empired Limited is an IT Services provider with a broad range of capabilities targeted at delivering enterprise IT solutions that improve efficiency, productivity and competitive advantage for our clients.

Our clients are medium to large corporate and government organisations within key industries including Energy and Natural Resources, State and Federal Government, Finance and insurance, Utilities and Transport.

We offer a broad range of services from managed services to digital transformation. Together they provide a breadth of service and expertise not seen in other consultancies of similar pedigree allowing Empired to deliver ‘end to-end’ business solutions that assist our customers in driving their key business outcomes.

With a team of over 1,000 people located throughout Australia, New Zealand and North America, Empired has built a reputation for service excellence. This combined with our strategy that is underpinned by initiative, innovation and growth ensures that in a dynamic and rapidly growing technology market place Empired is strongly positioned to capture market share and continue to build on its success.

Important notice re forward looking statements

Certain statements made in this communication, may contain or comprise certain forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, and business and operational risk management. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.

ASX Announcement

Empired LogoEmpired Limited releases the following financial information based upon unaudited management accounts for the financial year ended 30 June 2017.

FY17 Results

  • Revenue $168m, up 5%
  • EBITDA $15.4m, up 105%
  • FY17 H2 EBITDA $9m, up 36% from $6.6m pcp
  • Operating cash flow $9.6m, with H2 Operating cash flow $8.6m
  • Net Debt reduced to $13.8m (Includes the re-payment of all deferred consideration by year-end)

FY17 Commentary & Outlook 

  • Overall sales growth of 10% from FY16 is a key indicator to forward revenue.
  • Key growth regions ramping up with NSW sales growth of 32% and Auckland 67%.
  • Empired is experiencing strong demand for digital transformation services including data analytics, modern applications and cloud.
  • Revenue growth in FY17 of 5% was constrained due to a decline in low-margin product re-sale and soft activity in the US. The US returned to growth in Q4 and we expect this growth to continue based on sales activity and pipeline.
  • Recurring revenue and revenue from multi-year contracts continued to build throughout the year providing a solid workbook on which to build in FY18.
  • Depreciation and Amortisation will include a one off non-cash charge of $1m due to the Wellington office move and write-off of legacy assets.
  • Empired will release its audited financial accounts on 24th August 2017.
  • Expect FY18 earnings growth with strong cash conversion underpinned by top line growth, operating leverage and expanding margins.

Commenting on the full year result Mr Baskerville said, “This result cements a successful recovery year, putting the challenges of FY16 clearly behind us and sets a foundation for growth in FY18 and beyond.”

“Underpinning year on year growth is our recurring revenue base as well as growing revenue from multi-year contracts.”

“Pleasingly a focus on our key growth markets has delivered exceptional results with NSW sales up 32% and Auckland sales up 67%.”

“Margin expansion was also pleasing with Gross Margins expanding from 32% in the first half to 35% in the second half as a result of disciplined contract management and improved operational systems leading to an overall increase in utilisation.”

“The ramp up of our delivery centre in Bengaluru, significant operating leverage and a more efficient, lower cost operating model is expected to continue to deliver margin expansion over the medium term.”

“The proliferation of digital business models heavily reliant on data analytics, modern applications and mobile devices is ever present and underpins an exciting growth opportunity for Empired for many years to come.”

“I along with our board of directors would to like to thank our shareholders, client’s, staff and partners for their exceptional support and look forward to a very exciting future together.”

About Empired Limited

Empired Limited is an IT Services provider with a broad range of capabilities targeted at delivering enterprise IT solutions that improve efficiency, productivity and competitive advantage for our clients.

Our clients are medium to large corporate and government organisations within key industries including Energy and Natural Resources, State and Federal Government, Finance and insurance, Utilities and Transport.

We offer a broad range of services from managed services to digital transformation. Together they provide a breadth of service and expertise not seen in other consultancies of similar pedigree allowing Empired to deliver ‘end to-end’ business solutions that assist our customers in driving their key business outcomes.

With a team of over 1,000 people located throughout Australia, New Zealand and North America, Empired has built a reputation for service excellence. This combined with our strategy that is underpinned by initiative, innovation and growth ensures that in a dynamic and rapidly growing technology market place Empired is strongly positioned to capture market share and continue to build on its success.

Important notice re forward looking statements

Certain statements made in this communication, may contain or comprise certain forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, and business and operational risk management. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.

Rio Tinto, Empired and St George’s Anglican Grammar School strengthen ties between industry and education to run hackathon

Empired LogoRecognising the importance of STEM (Science, Technology, Engineering and Mathematics) and its place in the wider knowledge community, ASX-listed companies, Rio Tinto and Empired, have collaborated with St George’s Anglican Grammar School to run the school’s first “hackathon”.

The initiative will involve running training workshops in the lead up to the hackathon, facilitated by staff from all three organisations. Hackathons are now run worldwide and have produced industry recognised innovations, but this will be a first for St George’s.

Stuart Strickland, Empired, General Manager Western Australia says, “Rio Tinto and Empired have a decade-long, trusted partnership, and it is fantastic to be able to build on this by partnering with St George’s on this exciting initiative.

“Empired relies extensively on bringing on board enthusiastic STEM graduates from schools and universities and this initiative is a great way for us to encourage STEM as a career choice for the next generation of ICT talent, and to show our commitment to the Western Australian community.”

As part of this STEM vision and community commitment, Empired staff also advise Western Australia TAFE colleges on their STEM curriculum and sit on the AIIA (Australian Information Industry Association) and ACS (Australian Computing Society) Boards.

St George’s CBD location and close proximity to Rio Tinto provided the catalyst for this opportunity, along with a desire to give St George’s students an opportunity to experience real world challenges and develop and further grow young Australians in STEM. Rio Tinto’s close relationship with Empired, and the knowledge that they also share these values and beliefs, made them an easy choice to approach for support.

“At Rio Tinto we believe education is critical to a productive, active and informed society. We focus on fostering a culture of innovation through supporting education programmes in STEM related initiatives that build capacity in future generations. Rio Tinto has a commitment to developing a pipeline of diverse graduates who are STEM-literate and engaged potential future employees, so this hackathon provides a way to make high school students aware of STEM related pathways in the mining sector,” says James Davison, General Manager Studies & Technology at Rio Tinto.

In the heart of the Perth CBD, St George’s has an advantage to readily work with corporations such as Rio Tinto and Empired, meaning a much larger knowledge base for its students. This opportunity aligns to St George’s strategy, as an inner city school, to establish mature partnerships with industry. A mining company and IT company working together to encourage creativity with a CBD school gives great benefits to students and encourages them to explore available careers in IT and Mining.

“Rio Tinto and Empired are passionate about this hackathon. When we called for volunteers to give up a Saturday and be mentors, it was massively oversubscribed,” says Strickland. “The volunteers will work with students of St George’s over a Saturday to solve a number of real world solutions, collaborating to transform ideas into reality.”

Peter Freer, Mathematics Teacher at St George’s says, “This is a fantastic learning opportunity for the St George’s students as they engage in a project with real world outcomes. We’re really looking forward to seeing what exciting ideas the students come up with!”

All parties hope that this opportunity will encourage STEM in schools, get students to see the range of careers available within IT and Mining, engage with the Perth city community and show Empired and Rio Tinto as employers of choice.

About Empired

Empired Limited is an IT Services provider with a broad range of capabilities targeted at delivering enterprise IT solutions that improve efficiency, productivity and competitive advantage for our clients. We offer a broad range of services from managed services to digital transformation. Together they provide a breadth of service and expertise not seen in other consultancies of similar pedigree allowing Empired to deliver ‘end to-end’ business solutions that assist our customers in driving their key business outcomes. With a team of over 900 people located throughout Australia, New Zealand and North America, Empired has built a reputation for service excellence.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

About St George’s

St George’s Anglican Grammar School, a school of the Anglican Schools Commission (Inc.) caters for students in Years 7 to 12 and delivers an educational experience unrivalled in Western Australia. The location, at the heart of the Perth CBD, provides an ideal environment for students to engage in authentic and future-focused education while maximising use of the city’s exceptional facilities and resources.

The School motto, ‘Wisdom, Grace, Service’ forms the foundation of our ethos and values. St George’s aims to give students an education that equips them for life in a rapidly changing society and encourages them to become contributing and successful members of their community.

Important notice re: forward looking statements

Certain statements made in this communication, may contain or comprise certain forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, and business and operational risk management. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.

Empired launches cloud-based enterprise content management service for Australian and New Zealand organisations

Empired LogoEmpired has announced the launch of Cohesion 365, a cloud-based enterprise content management (ECM) service for Australian and New Zealand (ANZ) businesses and government agencies.

Cohesion 365 is built on the Microsoft-based enterprise document and records management service and was originally created by Intergen, an Empired company, for New Zealand government clients.

Cohesion 365 is designed to help agencies meet many of their content, collaboration, and information management needs, providing a secure, easy to use, enterprise-grade service, accessible from anywhere. It is a proven service used by government agencies such as the Ministry for Primary Industries (MPI) in New Zealand, which signed a six-year Cohesion government contract for NZD$12 million in 2015.

Simon Bright, Chief Operating Officer, Empired, said, “Cohesion was set up to help public sector agencies communicate, collaborate, and meet their records management requirements with a cloud-delivered ECM service.

“With the introduction of Cohesion 365, Empired can now offer this same service via the public cloud to private sector organisations and government agencies across ANZ. The platform leverages the Microsoft Stack, which makes Cohesion is a natural extension for many organisations with a familiar interface and functionality.

“We have delivered this service successfully to the New Zealand government over the past two years so expanding it is a natural evolution, particularly given the strong trend where government and enterprise are more open to public cloud services and are becoming more comfortable with the level of security public clouds have.”

Cohesion 365 takes a step towards the future in its user enablement, helping organisations achieve digital transformation by offering exceptional functionality. The focus on individual, team and community use creates a rich user experience, while compliance and records management processes are handled in the background. The burden of data organisation and classification is borne seamlessly by the application instead of by the user.

Simon Bright said, “Cohesion 365 is a key productivity enabler by virtue of using the Microsoft platform that is already in place and extending the capability to include ECM in a very user friendly form. The Cohesion advantage is that it will be instantly familiar to users, leading to a rapid and high adoption rate. We believe Cohesion 365 is a game-changer in the ECM space.”

-ENDS-

About Empired

Empired Limited is an IT services provider with a broad range of capabilities targeted at delivering enterprise IT solutions that improve efficiency, productivity and competitive advantage for our clients. Offering a broad range of services from managed services to digital transformation, Empired provides a breadth of service and expertise not seen in other consultancies of similar pedigree. This allows Empired to deliver ‘end to-end’ business solutions that assist our customers in driving their key business outcomes. With a team of over 900 people located throughout Australia, New Zealand and North America, Empired has built a reputation for service excellence.

Empired partners with the Royal Automobile Association of South Australia to rev up their member and customer experience

Empired LogoThe Royal Automobile Association of South Australia (RAA) has selected Empired as their primary partner to build a new digital platform to help RAA deliver on their digital transformation strategy.  Empired will develop a responsive and flexible platform that will enable RAA to grow and provide a high value and contemporary online experience to its existing membership and potential customer base.

Earlier this year Empired completed a Digital Roadmap exercise that helped RAA understand the necessary investment required over the next three years to deliver on their digital transformation strategy. RAA has now committed to a three year program of work to deliver on this strategy.

A major objective of this strategy is for Empired to develop a new platform based on the Sitecore® Experience Platform™ and Microsoft’s Azure cloud service.  This new platform will help RAA drive improved customer engagement and satisfaction, utility, and transactional capability. The implementation of this platform will also help RAA boost member and customer engagement through the personalisation of their digital experience and maintain and accelerate RAA’s membership acquisition.

Tim Kelly, Client Executive, Empired, said, “Empired is thrilled to be selected as RAA’s primary partner in helping them drive their digital transformation strategy. We look forward to working with RAA by leveraging our national digital capability to help them drive member engagement, retention or acquisition and deliver a competitive advantage to RAA in the growing digital market place.

Empired is also committed to extending our highly successful partnership with RAA beyond this program of work by offering our global IT services capability as they continue to grow their digital presence.”

Mike Walters, RAA’s Group Information Officer said, “RAA is well known for providing exceptional service to our members on the road, or in our shops or from call centres. Transitioning to a new digital platform will also allow us provide best practice, customer-centric, personalised and seamless services in the digital environment.

“We chose Empired because we believe they have the right mix of skills and culture to help us.”

– Ends –

 About Empired Limited

Empired limited is an IT Services provider with a broad range of capabilities targeted at delivering enterprise IT solutions that improve efficiency, productivity and competitive advantage for our clients.

Our clients are medium to large corporate and government organisations within key industries including Energy and Natural Resources, State and Federal Government, Finance and Insurance, Utilities and Transport.

We offer a broad range of services from managed services to digital transformation.  Together they provide a breadth of service and expertise not seen in other consultancies of similar pedigree allowing Empired to deliver ‘end to end’ business solutions that assist our customers in driving their key business outcomes.

With a team of over 900 people located throughout Australia, New Zealand and North America, Empired has built a reputation for service excellence.  This combined with our strategy that is underpinned by initiative, innovation and growth ensures that in a dynamic and rapidly growing technology market place, Empired is strongly positioned to capture market share and continue to build on its success.

Russell Baskerville of Empired wins 2015 EY Entrepreneur of the Year award for Services in the Western Region

Empired LogoNational IT services provider, Empired, has announced that its managing director, Russell Baskerville, has won 2015 EY Entrepreneur of the Year in the Western Region Services category.

The EY Entrepreneur of the Year program is considered the world’s most prestigious business award and is held in more than 145 cities and over 60 countries worldwide. In June, 100 entrepreneurs competed in five regional programs around Australia.

In 2007, Russell Baskerville successfully listed Empired Limited (Empired) on the ASX, as a small company with an ambitious plan. The company now has over 850 employees across 11 offices in four countries.

Russell Baskerville said, “This award is testament to the continued growth and success of Empired. Empired offers local knowledge supported by strong capability and experience, and has competed against some of the largest IT services companies in the world. It has contracts with the world’s largest mining firms and a range of major state government departments across Australia.”

Russell will compete for national honours later in 2015.

-ENDS-

About Empired Limited
Empired Ltd is a national IT Services Provider with a broad range of capabilities and a reputation for delivering enterprise class services and solutions. Established in 1999 in Western Australia, Empired has been a publicly listed company (ASX: EPD) since 2007. With a team of over 800 highly experienced and certified IT professionals located in Perth, Melbourne, Sydney, Brisbane, Adelaide, New Zealand, Seattle and Singapore, Empired has built a reputation for service excellence, making it a leading provider of business technology solutions to both government and private sectors.

Empired has a strong history of growth and contracted recurring revenue, and is positioned to leverage to growth trends with core solution offerings in Cloud, Enterprise Mobility, Big Data and Business Analytics. Empired operates through three interactive business streams, Infrastructure & Cloud Services, Consulting & Application Development and Business & Productivity Solutions. Together they provide a breadth of service and expertise not seen in other consultancies, bringing together a range of services to provide ‘end-to-end’ advice and solutions. Our flexible service delivery approach and proactive attitude has enabled Empired to secure clients that range from medium size entities through to large enterprise accounts with services delivered across Australia, South East Asia and beyond.

Empired achieves the 2015 Microsoft Dynamics Inner Circle

Empired LogoJuly 30, 2015Empired, Australian-listed IT services company, has achieved the prestigious 2015 Microsoft Dynamics Inner Circle, an elite group of the most strategic Microsoft Dynamics partners from across the globe with sales achievements that rank them in the highest echelon of the Microsoft Dynamics global network of partners. Members of the Microsoft Dynamics Inner Circle have performed to a high standard of excellence by delivering valuable solutions that help organisations achieve increased success.

2015 Inner Circle members are invited to the Inner Circle Summit, taking place in Seattle, WA, September 1 – 4, 2015, where they will have a unique opportunity to share strategy and network with Microsoft Dynamics senior leaders and other successful Microsoft Dynamics partners from around the globe.

This recognition of the Microsoft Dynamics Inner Circle came during the Microsoft Worldwide Partner Conference (WPC) 2015, the company’s annual premier partner event, which took place this year in Orlando, Florida. WPC provides Microsoft Corp.’s partner community with the opportunity to learn about the company’s road map for the upcoming year, establish connections, share best practices, experience the latest product innovations and learn new skills.

“Each year we recognise and honour Microsoft Dynamics partners from around the world for exemplary performance,” said Neil Holloway, Corporate Vice President, Microsoft Business Solutions Sales & Partners. “ These award-winning partners inspire us by the standards they set and the impact they have on the business.  Microsoft is honoured to recognise Empired for their achievements this past year and for their dedication and support of Microsoft Dynamics applications.”

Russell Baskerville, managing director, Empired, said, ““This award is testament to Empired’s success in delivering innovative solutions combined with service excellence to its customers to grow the business across Australia and New Zealand.

“By collaborating with the teams at Microsoft, Empired maintains a strong expertise of the Microsoft Dynamics platform to provide innovative solutions, strong services and unparalleled value to Microsoft Dynamics customers.”

# # #

About Empired Limited
Empired Ltd is a national IT Services Provider with a broad range of capabilities and a reputation for delivering enterprise class services and solutions. Established in 1999 in Western Australia, Empired has been a publicly listed company (ASX: EPD) since 2007. With a team of over 800 highly experienced and certified IT professionals located in Perth, Melbourne, Sydney, Brisbane, Adelaide, New Zealand, Seattle and Singapore, Empired has built a reputation for service excellence, making it a leading provider of business technology solutions to both government and private sectors.

Empired has a strong history of growth and contracted recurring revenue, and is positioned to leverage to growth trends with core solution offerings in Cloud, Enterprise Mobility, Big Data and Business Analytics. Empired operates through three interactive business streams, Infrastructure & Cloud Services, Consulting & Application Development and Business & Productivity Solutions. Together they provide a breadth of service and expertise not seen in other consultancies, bringing together a range of services to provide ‘end-to-end’ advice and solutions. Our flexible service delivery approach and proactive attitude has enabled Empired to secure clients that range from medium size entities through to large enterprise accounts with services delivered across Australia, South East Asia and beyond.

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