Publicly listed IT services and software provider MOQ Limited has enjoyed a substantial turnaround in net profit for the six months ending 31 December last year, with the earnings increase coming as the company ramps up its digital services play.
While the company’s revenue saw a slight increase from $32.7 million in the final six months of 2019 to $35.7 million in the final six months of 2020, its earnings before interest, tax, depreciation and amortisation (EBITDA) surged to $4.0 million, well up from the previous corresponding period's tally of $953,393.
Moreover, net profit after tax (NPAT) rose to $1.3 million, flipping the prior corresponding period’s loss of $770,242.
“MOQ Limited’s strategy continues to be focused on building a market leading cloud-centric technology services and solutions businesses, aimed at capitalising on the accelerating market opportunity presented by digital transformation,” the company told shareholders in a statement.
“The group is actively pursuing suitable growth opportunities by either organic investment or through synergistic acquisitions in the technology sector. The directors of the group have extensive experience and a proven track record in building and acquiring businesses, as well as providing strategic direction, in order to generate long term sustainable returns for shareholders."
"The directors would like to report that through H1 FY21, we have continued to make progress towards achieving our previously stated strategic goals and building the foundations for the business that we aspire to be,” the company added.
While MOQ's overall gross profit contribution from operations grew by 6 per cent, year-on-year in the six-month period, its digital services gross profit has increased by 28 per cent and now represents 63 per cent of the MOQ business.
Recurring services now comprise 49 per cent of the total gross profit of the MOQ business and has grown 25 per cent.
“Key half on half financial metric comparisons such as an increase in gross profit for the digital services business of over 28 per cent and recurring services up almost 25 per cent are clear indicators that the business strategy to pivot to applications and data to complement our strengths in the IT Infrastructure market is the correct one and the strategy has at this stage been matched by excellent on the ground execution,” the company said.
“The importance and impact of the decision to make Microsoft, MOQdigital’s technology partner of choice and our subsequent ramp-up to make that relationship productive cannot be underestimated. We anticipate Microsoft’s exponential growth performance in cloud, applications and data is likely to continue to reap benefit for MOQdigital and its customers," the company said.
“The MOQ business has now definitely reshaped towards its strategic focus of digital transformation services and increased recurring services."
The financial report comes just days after MOQdigital revealed it has made a major investment into its cyber security capabilities, launching a new division dedicated to the practice.
The company promoted its principal consultant Bruce Irwin to lead the new division, which will be dedicated to helping customers secure their infrastructures and offer “differentiated value” across cloud and edge.