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SMS spun its wheels in FY2009

Australian IT services group SMS Management and Consulting has started building its staff numbers again as it exits a year characterised by slightly shrunken profits and revenues.
Written by Renai LeMay, Contributor

Australian IT services group SMS Management and Consulting has started building its staff numbers again as it exits a year characterised by slightly shrunken profits and revenues.

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SMS CEO Tom Stianos
(Credit: SMS M&T)

In July 2008, the company had a total of 1401 staff, distributed between permanent consultants, contractors and administration staff. That number shrank to a minimum of 1139 as at March this year, but has risen since to 1168 by the end of June.

The company's total revenue shrunk 3 per cent in the period to reach $230.6 million, while net profits were also down, by 2 per cent to reach $24.3 million, according to its annual financial results released today.

Like Oakton chief executive Neil Wilson, whose company this morning revealed a net profit hit of almost 50 per cent, SMS CEO Tom Stianos noted instability in the business environment caused by the global financial crisis as a factor over the past year.

However, he said the company had demonstrated the "resilience" of its business model and was planning to continue acquiring other businesses in areas where it had previously relied on contractors. In fact, SMS withdrew from one potential acquisition opportunity during the past year to 30 June. Investigating the potential deal cost it $252,000 in due diligence costs.

And there's good news ahead for Australia's IT sector, according to Stianos. "Despite recent market volatility, the fourth quarter of 2009 saw signs of more prolonged positive sentiment returning to the market, manifesting itself in good sales," he said. "As a consequence, the consulting and technology services business units have recommenced recruitment to match the improving demand."

Despite the slightly diminished results of his company, Stianos himself picked up a $69,335 overall pay rise compared with the previous year, with his total remuneration reaching $957,566. Several other executives, CFO Stephen Kelly and consulting managing director Graham Lanphier, also picked up moderate pay rises.

Though Paula Johnson, managing director of the company's M&T resources recruiting business, and Jason Young, managing director of the company's technology services business, both saw their pay drop slightly.

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