PS&C Ltd (ASX:PSZ) has updated its forecast normalised EBITDA for FY18 to $7-$7.5 million representing 15-24% growth on FY17.
PS&C’s managing director and CEO Glenn Fielding said: “Following on from the restructure activities that occurred during FY17, FY18 has been a transformational year for the company with the focus firmly on ‘getting the house in order’ setting the foundations for strong top line and bottom line growth in the years to come.”
Company focused on three business divisions
PS&C is an information and communication technology (ICT) professional services entity.
The company is focused on three business units: People, Security and Communication.
These business units service a range of government and corporate organisations.
Looking ahead to FY2019
The company noted that its focus on Managed Security Service offering has been very well received and will contribute significant new annuity revenue in FY19 and beyond.
Fielding added: “A great deal of work has been done to centralise operational functions resulting in efficiencies that will allow the company to administer a significantly larger revenue base on a lower cost envelope, in turn leading to an overall improvement in EBITDA margins.
“I could not be more confident that the changes we have implemented and the additional acquisitions we have made provide a pivot point for the company where growth across all key performance metrics will materialise in FY19 and continue to strengthen in the years to come.”
40-60% EBITDA growth forecast for FY19
“Key appointments during FY18, together with the recent key acquisitions, gives us confidence that FY19 will deliver an expected operating EBITDA performance in the range
of $10 million to $12 million, (representing a 40 – 60 % increase on FY18) and set the company up for the reinstatement of ongoing dividends to shareholders."