IT services provider Empired has seen its fortunes soar high on all fronts for the year ended 30 June 2021, ahead of its $233 Million acquisition by IT giant Capgemini.
The Perth-based company posted revenue of $186.1 million, a significant rise of 12.4% from the last financial year, and pre-tax earnings of $22.6 million, more than double that of the previous financial year.
In terms of net profit after tax or NPAT, Empired posted $10.5 million, an increase of 71% year-to-year and a marked departure from its 2019 loss. The IT major noted that it expected “solid growth” in the financial year 2022, with particular growth witnessed on the Australian east coast, which is expected to grow ahead of the market and provide an uplift in earnings contribution.
During the last financial year, Empired signed contracts with Western Power Systems worth $61 million and a $52 million Environmental Protection Authority contract in Victoria.
The company also picked up a deal with the South Australian Department of Innovation and Skills or DIS, which is valued at $9 million in total and will witness Empired modernizing the department’s core systems over two years. Empired’s prospects looked promising when it posted a profit leap of 284% to $7.7 million for the half-year of 2021.
The Australian IT services provider maintained a 2020 return to profit for the six months ended 21 December 2020 following a prolonged and disciplined period of cost reduction amid the coronavirus pandemic.
The Capgemini acquisition is expected to lead Empired to much greater heights in terms of revenue growth. The acquisition of Empired would increase the size of the Capgemini business in Australia as well as in New Zealand significantly and help position it as a market leader in data, digital, and cloud across the region.
Since Empired offers end-to-end capabilities in data and cloud to enable the digital transformation of major industries across Australia, the acquisition will help offer a complementary geographic footprint to Capgemini.
Capgemini is on an acquisition spree as in 2021, and the company also announced the acquisition of SAP consulting and digital solution provider Acclimation and digital services consultancy provider RXP Services.