Recently-listed IT consulting and services company PS&C Ltd (ASX: PSZ) has reported a 25% increase in normalised revenue for the half-year ending 31 December 2014 of $39.53 million and a 57% jump in normalised earnings before interest and tax (pre-acquisition costs) to $3.81 million.
The group operates across three divisions, namely: People – outsourcing and placement, Security – penetration testing and assurance, and Communication – infrastructure and consulting.
In its presentation to investors, management described the People division as performing well and maintaining high margins; the Pure Hacking business which is housed within the Security division as performing strongly; and the Communications division as having a strong pipeline of work.
Growth and yield
Having listed in December 2013, the group remains with no debt and $4.1 million of cash which gives PS&C the firepower to grow.
PS&C is obviously trying to position itself for growth in the IT security services sector – it certainly seems reasonable to suspect that more companies will be spending more money protecting their information systems in the future.
At the same time, investors are able to buy into a growth company which has a trailing twelve month dividend of 6 cents per share. With the share price dropping around 5% today (on light volumes) to 89 cents, the stock is trading on a fully franked yield of 6.7%.
Like many of its peers within the IT services sector, such as SMS Management & Technology Limited (ASX: SMX) and DWS Ltd (ASX: DWS), PS&C is also priced on what is arguably an appealing valuation, adding further weight as to why this company could be a good one for investors to keep an eye on.
