In January 2006 ASG and sub-contracted partner CSC won a $87.8 million, 10-year contract with the WA State Government to provide services relating to its whole of government shared corporate services arrangement. The company is led by chief executive Geoff Lewis (pictured).
Since that time — and after a damning auditor report on the project — the State Government has reworked the project and brought it under the Department of Treasury and Finance. ASG group chief officer of Sales and Strategic Operations, Murray Rosa, today did not immediately return a call asking for background on how the two deals related.
However, in a statement today, ASG said the new deal was worth at least $16 million a year over five years, with scope for an additional $20 million in added project services to be bolted on the top.
The company noted the contract covered “a comprehensive range of IT services”, as well as additional services including application services, technology renew and extended professional consulting services.
In his company’s statement, Rosa emphasised ASG had achieved a strong momentum in securing contracts in the new financial year. “We remain well-positioned to deliver strong earnings growth in financial year 2011 and beyond,” he said, driven by strong contract wins, three recent acquisitions and a solid pipeline of contract opportunities.
In 2010, ASG has won contracts with the Department of Prime Minister and Cabinet ($41m), Western Power ($35m), the WA Department of Education ($23m), Vodafone Hutchison Australia (unknown) and the Department of Broadband, Communications and the Digital Economy ($13m), according to the company’s statement — and it has an “opportunity pipeline” in excess of $626 million.
ASG’s share price sank 2c to hit $1.35 at the close of trading today — 20c off its 52-week high of $1.55 but substantially above its 52-week low of 81c.
Image credit: ASG