Up 164% in 12 months, Empired (ASX:EPD) share price unmoved by contract win

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Bernd Struben ❯

Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel.

Published June 24, 2021 4:10 pm AEST

The Empired Ltd (ASX: EPD) share price, up 164% since this time last year, is flat today, with investor's shrugging off the company's newly reported government contract.

Below we look at the details of the new contract from the IT services provider.

What did Empired announce?

Empired's share price didn't do much today, despite reporting it had been awarded a $9 million digital services contract with the South Australian Government Department of Innovation and Skills (DIS).

DIS works to grow the South Australian economy, supporting people and businesses and helping to increase South Australia's productivity growth rate.

Empired stated it will provide a range of services that includes replacing and modernising DIS' core systems, providing program management, as well as digital and data services.

The initial 2-year term of the contract will see work kick off in July. Empired estimates revenue of $5.5 million from the contract in the 2022 financial year and $3.5 million in FY23.

Commenting on the secured contract, Empired's CEO Russell Baskerville said:

We are delighted to have been selected by DIS as their primary digital transformation partner and are excited to work closely with the department over the coming years to modernise and extend the range and accessibility of digital services provided by the department.

Baskerville added that the company forecasts its Australian East Coast sales results to increase more than 50% in the 2021 financial year compared to FY20.

Jeremy O'Donohue, Empired's regional sales manager South Australia, said the "South Australian government has backed Australian and South Australian businesses to deliver on what will be a critical technology and business transformation."

Empired share price snap shot

Empired shares are up an impressive 164% over the past 12 months, handily beating the 24% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

The Empired share price hit 5-year highs on 26 May, trading for 91 cents per share. Since then shares have retraced a touch, currently trading for 88 cents per share.

Year-to-date, the Empired share price has continued to outperform, up 28% in 2021.

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