Story image

RXP well positioned for continued growth

18 Feb 16

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.

HPE promotes 'circular economy' for end-of-use tech
HPE is planning to show businesses worldwide that throwing old tech and assets into landfill is not the best option when it comes to end-of-use disposal.
Xinja can now officially call itself a bank
The ‘neo’bank that is focused on being a digital disruptor to traditional financial institutions has received a restricted banking license from APRA.
Exclusive: Three access management learnings from 2018
There was a renewed global response to data security in 2018, placing pressure on organisations to assume more responsibility for the data they hold.
Wearables market flourishing - fuelled by smartwatches
A market that has stuttered in the past now has a bright forecast as adoption of wearable technology continues to thrive.
The tech that helped the first woman to sail around Australia
Lisa Blair used devices from supplied by Pivotel to aid her in becoming the first woman to circumnavigate Australia non-stop.
Why there will be a battle for the cloud in 2019
Cloud providers such as AWS, Azure, and Google will likely find themselves in a mad scramble to gain additional enterprise customers.
WLAN market picks up thanks to high-end products
Dell’Oro Group have released a report showing that the WLAN market picked up in 2Q18 as 802.11ax saw its first shipments.
Mercury Energy sells smart meter business for $270m
“Metrix’s large installed meter base, deep customer relationships and innovation platform, make this a natural acquisition."