Releasing the company's results for the 2002/03 financial year, Kaz said "further significant prospects [for its Kaz Technology Services division] have emerged in the government sector, with signs that government agencies are willing to move beyond the multi-national outsourcers, given that Kaz represents a sizeable and viable alternate provider of IT services".
While the corporate market for information technology services remained subdued, "the government sector remains strong and now accounts for 58 percent of revenues," the company said.
Kaz Group's 2003 financial results were in line with expectations, reporting revenue of AU$355.6 million -- AU$100 million more than last year, and EBITA (earnings before interest, tax, depreciation, and amortisation) of AU$33.8 million.
Kaz has had a very busy year, restructuring the company into three separate divisions, Kaz Technology Services, Kaz Business Services, and Kaz Software Services. That task included integrating acquired businesses Aspect Computing, Ausdata, and Australian Administration Services (AAS) into those three streams.
The efforts of consolidation and restructuring, which included property rationalisation, staff redundancies, roll out of common human resources policies, and aligning contracts added AU$3.5 million to costs.
Kaz Technology Services propped up the business accounting for $258.6 million of revenue.
Kaz Business Services, its new business process outsourcing arm which includes Ausdata and AAS, brought in revenues of AU$98.5 million, 6.5 percent less than the previous financial year.
The main source of financial stress for the company has come from its Software Solutions arm, which sucked up money in investment into its three products suites, DIPS, Fundi, and Atune, but so far hasn't produced great sales figures. The software side of business only accounted for AU$14.2 million of revenue.
Peter Kazacos, managing director of Kaz Group, said: -Whilst this result reflects the difficult trading environment experienced during the year, it should also be viewed in the context of a year of restructuring and integration and a year where we have continued to invest in key future growth initiatives," he said.
In the company's outlook for the next financial year, it says market conditions may remain difficult so it is remaining cautious, but there are signs of improvement.
