ASG Group Limited (ASZ) shares gained almost 7% after the company announced profit guidance for the year to 30 June 2008. The company said it should be able to report full year EBITDA growth of 44%.
ASG is expecting EBITDA for FY08 to be $16 million, up from $11.1 million last year. The company reported EBITDA of $7.2 million in the December half.
Managing director Geoff Lewis said the improved result had arisen from the company’s recent success in securing a number of significant government and corporate contracts.
The Perth based company said it also had a large base of ongoing multi-year agreements.
ASG announced over $100 million worth of new contracts in the second half of the fiscal year, including a $30 million contract with the Federal Department of Infrastructure, Transport, Regional Development and Local Government.
In April, the company also secured contracts with a total value of about $75 million with a range of existing and new customers including Multiplex, Virgin Blue Holdings Limited (VBA), Ericsson/Hutch and Inpex.
At 1130AEST, ASG Group shares had gained 5c to 80c.