WA Department of Education to spend $14.8M on IT modernisation project

The Department of Education in Western Australia will spend $14.89 million modernising its technology infrastructure after signing a five-year contract with ASG Group for new licenses and support services.

Under the contract, ASG is providing the department with strategic support and a “licensing modernisation solution” based on Oracle technology. ASG has been supplying finance, HR and payroll managed services and project services to the department since 2006.

ASG supplies all Oracle licenses to the department, which has the largest payroll in Western Australia.

The latest contract follows a $23 million, three-year deal ASG struck with the department in early 2010 to supply its Oracle applications, database administration and server operations.

ASG said in statement that it had signed several contracts, totaling $25 million, over recent weeks with public and private sector organisations. It was also close to concluding a further $60 million worth of agreements as the preferred tenderer in “exclusive negotiations.”

In late February, ASG Group reported revenue of $75.9 million for the six months ending 31 December 2012, down from $76.04 million reported a year earlier.

The company adjusted EBITDA was $12.8 million before a one-off impact of $15.6 million in write downs, which were driven by a previous strategic review and realignment of its business development approach and cost structure.

After the write-down, it reported EBITDA of -$2.79 million, compared to $14.36 million the year earlier.

ASG Group shares were trading at 33 cents per share on Wednesday morning.