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Calian’s revenue up 9% in fiscal Q4 on growth in business and technology division

Calian’s revenue up 9% in fiscal Q4 on growth in business and technology division

November 15, 2018

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Calian Group Ltd. (TSX: CGY) reported revenue rose 8.9% in its fiscal fourth quarter ended Sept. 30. Revenue growth came in the company’s business segment that includes staffing.

(C$ thousands)

Q4 2018

Q4 2017

% change

Q4 2018 (USD $000s)

Revenue

$78,727

$72,321

8.9%

-

$60,948

Gross profit

$15,287

$14,209

7.6%

$11,835

Gross margin percentage

19.4%

19.6%

Net profit for the period

$4,271

$4,327

-1.3%

-

$3,306

The Ottawa-based firm reports revenue in two segments: “Business and technology services” and “systems engineering.”

Revenue rose 19.4% in the business and technology services segment, which includes staffing and other services. The gain offset a 14.4% decrease in Calian’s systems engineering segment, which includes engineering services.

Revenue by segment

(C$ thousands)

Q4 2018

Q4 2017

% change

Q4 2018 (USD $000s)

Business and technology services

$59,423

$49,777

19.4%

-

$46,004

Systems engineering

$19,304

$22,544

-14.4%

-

$14,945

Full fiscal-year results

(C$ thousands)

FY 2018

FY 2017

% growth

FY 2018 (USD $000s)

Revenue

$304,958

$275,423

10.7%

-

$236,089

Gross profit

$59,692

$52,904

12.8%

$46,212

Gross margin percentage

19.6%

19.2%

Net profit for the period

$16,077

$15,390

4.5%

-

$12,446

Calian last month reported that Kevin Ford resumed full duties as president and CEO following a temporary health setback. Ford in April suffered a cardiovascular event over the Easter weekend. 

Quote

“With a contracted backlog of over C$1 billion, positive cash flows and a strong balance sheet, Calian is uniquely positioned to leverage a strong financial position for continued investment in both organic and acquisitive growth,” Ford said.

Guidance

Calian expects revenue for fiscal 2019 to be in the range of C$330 million to C$360 million.

Share price and market cap

Calian shares were up 0.42% to C$28.92 at 12:40 p.m. Eastern time; the company had a market cap of C$223.63 million, according to FT.com