Gruden Group boosts revenues with important government contract

By Trevor Hoey. Published at Dec 6, 2016, in Technology

The Gruden Group (ASX: GGL) announced on Tuesday morning that it had been selected by the New South Wales Small Business Commissioner (OSBC) to deliver an integrated digital solution to enable it to interact more efficiently and effectively with small businesses. This represents a relatively large client base with approximately 700,000 small businesses operating in New South Wales.

This development is positive from a number of perspectives in that the $2.93 million contract will immediately generate revenue in fiscal 2017, and out to 2019 with the prospect of a further two 12 month extensions beyond 2019.

However, as the New South Wales government is already one of GGL’s clients it also serves as an endorsement of the company’s effectiveness in assisting enterprises including government instrumentalities to operate efficiently in a digital environment.

On this note, GGL’s Chief Executive Tim Parker said, “Our technical expertise and capabilities have been proven time and time again and this is yet another example of where we excel in this space”.

Another factor to bear in mind is that this comes on the back of other successes in the government arena including a recent agreement inked with the Public Records Office of Victoria.

Looking at GGL’s overall business, the Gruden Government division accounted for 30% of revenue in fiscal 2016 with Performance Marketing being the largest income generator with 36%.

Consequently, this contract supports an important part of the company’s business, particularly given the division also counts the Australian Government as one of its clients.

Importantly, contracts such as this also assist GGL in enhancing its own product offerings and areas of expertise with Parker saying, “The agreement also provides the opportunity for Gruden to work closely with OSBC in scaling the solution to suit other government and commercial requirements”.

However, how rapidly this coms to bear remains to be seen, and as such this is a speculative investment. Investors should seek professional financial advice if considering making an investment.

Gruden boasts blue-chip client base

As can be seen from the snapshot of GGL’s four divisions there are a number of blue-chip clients as well as major enterprises, including global entities.

Established partnerships with global digital players assists in winning new business

GGL has also forged strong strategic partnerships along the way with major global players in the digital IT space.

As can be seen below, these along with the group’s status as preferred supplier across several government departments leave it well-positioned to successfully tender for new work.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X