Oakton Profit Results

Australian IT and consulting company, Oakton (ASX:OKN) has reported its profit results seeing a 42 percent increase in full year profits at $20.2 million. Oakton ended the year with 1,115 staff, down 2 percent. Staff count in India was up 10 percent to 120.

Oakton managing director Neil Wilson said, "Oakton has been working to strengthen our market position as a specialist consulting and IT services company. We are particularly pleased with significant market share gains in Sydney and Melbourne. Importantly our Indian operation will continue to play a critical role in this strategy." Revenue was $186 million with EBIT increasing 32 percent to $32.3 million. Costs included legal costs of $1 million from a dispute with Victorian customer Tenix.

Oakton Financial FY2010

• EBITDA of $32.3m (organic growth of 32% on the prior corresponding period), NPAT of $20.2m (up 42% pcp), Revenue of $186m (down 4% pcp).
• EBITDA includes legal costs in relation to the Tenix dispute of $1m
• Diluted EPS of 21.8 cents (up 37% pcp)
• Final fully franked dividend of 4 cents, total dividend payout for the year 6.5 cents (up from
  2.25c pcp)
• Operating cash flow of $20.6m, with net debt further reduced to $9m ($23m pcp) – debt is forecast to be eliminated in CY2010
• Ended June 2010 with 1,155 staff (down 2 pcp). India at 120 staff (up 10 pcp)
• Significant market share gains in Sydney and Brisbane
• Entered FY2011 with booked and committed revenue at 45% of FY2011 full year budget
• Strengthened strategic vendor relationships with Microsoft, SAP, Oracle and IBM
• Continued focus on larger and longer projects and use of offshore capability
• Continued focus on project quality and governance processes has reduced risk and improved project profitability
• Oakton will hold its Annual General Meeting on Wednesday 6 October 2010 at 10am in its Melbourne Offices, Level 8, 271 Collins Street, Melbourne.