Joe D’Addio (MOQ)
MOQ Limited is set to double down on digital services and cyber security acquisitions in the new financial year as it comes out of FY21 with its post-tax losses slashed by 93 per cent.
The systems integrator (SI) claimed in a presentation to shareholders that it was looking for merger and acquisition (M&A) opportunities in the cyber security and digital services areas — the latter of which is leading the business’ growth, according to documents listed to the Australian Securities Exchange (ASX).
This echoes its moves in FY21, where it set up a cyber security division and acquired the Perth-based IT services provider Dienst Consulting.
MOQ also claimed it is looking to expand its geographic coverage into Western Australia and Victoria.
Its intentions to expand come amid it crushing its net loss after tax down from $14.5 million in the black from FY20 down to a loss of $1 million.
MOQ also managed to raise revenue by 9 per cent, to $71.1 million, and earnings before interest, tax, depreciation and amortisation (EBITDA) before impairment by 18 per cent, to $3.4 million.
Joe D’Addio, CEO of MOQ, said to shareholders that the SI had been dominated by three key factors during FY21 — the opportunity of digital transformation projects, accelerating its re-engineering and acquisition efforts and the market landscape created by the COVID-19 pandemic.
“The financial results for FY21 have been influenced by the Board and executive team’s determination to keep the MOQ business moving forward and strongly positioned for what is shaping up to be a very promising IT services market in FY22 and beyond,” he said.
During the financial year, the company also received just under $2 million worth of government grants as a means to mitigate the economic impact of the COVID-19 pandemic, which consisted of $1.9 million from JobKeeper and $50,000 worth of cash flow boosts
Troubling the business however is the state of the skilled emerging technology labour market, according to ASX documents, and it is expected to persist for the next few years.
“Attracting and retaining staff has rarely been this challenging and supply levels have led to not only higher salaries, but also higher costs in terms of resources and fees for recruitment,” the documents noted.
“Our view is that this will be an ongoing issue for the next [two to three] years and the executive team has put in place a comprehensive plan to address this challenge – short and long term.”
In addition to its expansion plans, the business is also redirecting its attention to re-engineering its foundational and cyber security business lines, which kicked off in the second half of FY21.
