Amcom lifts profit by 10pc to $28.4m
Amcom lifts profit by 10pc to $28.4m

Fibre data, communications and cloud hosting company Amcom has posted a 10 per cent jump in full-year profit to $28.4 million.

Underlying net profit before significant items from the company's wholly owned operations for the year was up 22 per cent to $16.8 million.

The result was achieved on revenue of $136 million, up 56 per cent.

The company declared a final fully franked dividend of 3.2 cents a share, up from three cents the previous year, bringing the full year dividend to five cents, from 4.8 cents previously.

The final dividend will be paid on September 21.

Amcom said the lift in earnings was achieved on the back of strong organic sales growth from its core fibre networks and expanded business services offerings.

"Data network sales for FY12 were 43 per cent ahead of the previous financial year," the company said in a statement.

"The recurring revenue base for all annuity streams of the business now exceeds $90 million at year end."

Amcom Chairman Tony Grist said the strong profit result was also accompanied with an 82 per cent increase in free cash flow.

In its outlook, the company said it had entered the new year in a strong financial position and would look at new growth initiatives.

"The existing data networks (fibre) business continues to grow as does the pipeline of opportunities in the Cloud (hosted IT) services market," Amcom said.

"The business is on track to achieve similar underlying earnings growth in FY13 as delivered in FY12."

In August, Amcom distributed its 20.6 per cent iiNet holding to shareholders via an in-specie distribution and in November the company announced the $15 million acquisition of L7 Solutions.

Amcom shares were down 2.5 cents, or 2.07 per cent, to $1.185 at 12.10pm.

The West Australian

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