ASX-listed consulting firm RXP Services has seen its profit growth slide for the last financial year as it continues to rebalance its work mix.
In the 12 months to 30 June 2018, RXP delivered a net profit after tax of $7.8 million – down 33 per cent on its FY17 profit of $11.6 million.
RXP’s revenue grew three per cent during the 12-month period to $144.9 million, while the consulting firm’s earnings before interest, taxes, depreciation and amortisation dropped 29 per cent to $13 million.
RXP noted in a statement to shareholders that The Works – which it acquired last year – is “delivering in line with expectations and continues to win new client work, which provides further business development opportunities to the wider RXP group.”
“The acquisition of The Works has provided RXP with the opportunity to build upon its digital expertise,” the statement said.
“The company is pleased that The Works has integrated into the broader RXP business, providing RXP the ability to offer its clients seamless, end-to-end digital solutions.”
Ross Fielding, chief executive of RXP, said the company’s FY18 result was impacted by a faster than anticipated decline in traditional consulting work, particularly in the first eight months across two major clients.
However, Fielding noted that RXP was able to “successfully position the business to take advantage of the promising growth in our digital work”.
“The rebalancing of our work mix posed challenges to our business during FY18,” he said.
“However, we are confident that these have been dealt with and, with the strong momentum in our business, the outlook is positive.”