IT solutions provider Cirrus Network Holdings (ASX: CNW) has announced the awarding of two major contracts, both secured via public tender, to the figure of $5.5 million.
The securing of the contracts continue a strong run of sales for the Perth-based IT company which last month announced record (unaudited) EBITDA of $1.8 million and revenues forecasted to increase 16% on FY18.
The first of the contracts was awarded by the WA Child and Adolescent Health Service and sees Cirrus’ 2016 contract renewed for a further three years to cover maintenance and support of the Perth Children’s Hospitals.
The second was awarded by the WA Public Transport Authority to provide a high performance storage solution.
“Cirrus is proud to again be recognized by and partner with Perth Children’s Hospital, a world class health facility to deliver market leading network management and support,” said Cirrus Managing Director, Matt Sullivan.
“Similarly to be acknowledged for our innovative and cost competitive approach to high performance storage by the PTA awarding us this important contract is a great achievement.”
Managed services has been the strongest areas of revenue growth for Cirrus with revenues up 91% with gross margins in this category achieving significant growth of 181% ($1.3m in FY18 to $3.7m in FY19).
The outlook remains positive for the IT company with a shift towards higher margin service contracts which the company expects to be the primary driver of growth in total revenue to circa $100 million in FY20.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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