RXP well positioned for continued growth
In the second half of 2015, ICT professional services company RXP Services, experienced significant growth across all key areas, with revenue up 53% to $55.8 million. In the year prior the company's revenue was $36.4 million.
In the forecast period the company experienced organic revenue growth of 19% and operating cashflow was up 244% from $2.9 million the year prior to $5.9 million.
Ross Fielding, RXP chief executive officer, says this result is further validation of the company's OneRXP strategy, which provides RXP clients and partners with a cohesive set of go-to market services and solutions.
In the forecast period, the RXP team grew by 184 people. Fielding says this growth was driven by 'strong organic growth' and 'successful completion of the Engage ViidaCom and 10Collective acquisitions'.
"Our ongoing investment in our people and training programmes continues to strengthen the depth of talent within our chosen specialisations," he says.
"The integration of Engage ViidaCom long with digital technology company 10collective has gone very well with both delivering to plan and both providing good client and practice cross-selling opportunities.
"We have also continued to develop our intellectual property-backed solutions and 'As a Service' offerings over the half year. We see a number of opportunities available to re-use our IP and will continue to focus on leveraging these further," says Fielding.
The momentum built in the second half of 2015 has continued into January, and given the pipeline of work in place, RXP expects full year revenue to reach $120 million, with EBITDA margin of 13-14% being maintained.
Commenting on RXP's outlook, Fielding says, "Our 1H16 results were strong and, combined with the good start that we have seen to the second half, we are in a sound position for sustained growth across our chosen specialisations.
"We have a firm commitment to 'specialisation wins', and working in growth areas that are relevant to our clients. The ability to evolve and grow our business organically has been a key driver to our success.
"Our strong balance sheet, strong cash generation, and healthy sales pipeline, combine with our talented team and 'OneRXP' approach, positions us well to execute on our strategy and deliver continued growth moving forward," he says.
