Oxygen grows strongly under UXC ownership - cements leadership position in SAP services
Oxygen’s chief executive Mike T. Smith says earnings were 10% ahead of plan and sales revenues topped A$40 million.
“We’re delighted with the result. Our performance cements our position as the largest and fastest growing specialist SAP services and solutions company across Australia and New Zealand,” Mike Smith said.
During the year our staff numbers increased by over 12% to 225 including contractors, with increases in staff numbers across our Melbourne, Sydney, Brisbane, and Auckland offices. Oxygen’s geographic presence also grew during the period with the addition of an office in Canberra.
Both the impact and quality of our work during the period was recognised by being awarded two SAP Partner Awards of Excellence; one for ‘Best SAP Innovation' for the development of an overall SAP Strategy for Alinta and also for the 'Best SAP CRM Project’ for the implementation of a Customer Interaction Centre at SCA Hygiene Australia.
Regional growth was balanced across all regions. Oxygen’s Southern Australian Region (Melbourne and Queensland) showed particularly strong year on year growth, with large contracts completed or underway for Rio, Alinta, L’Oreal, Cadbury’s and SCA Hygiene. New Zealand continued a strong record of growth, with a strong second half of the year and a number of multi million dollar engagements commencing.
“In summing up the year I think there are three key performance indicators which are most significant,” Smith said. “First is the increasing number of very large SAP consulting and implementation contracts we are taking on and successfully completing.
“Second is the growth in our SAP application managed services business. This is where we contract to provide long term support for our customers’ SAP applications. This annuity revenue business now makes up more than 10 percent of our total revenues, with a blue chip list of customers including Fonterra, Carter Holt Harvey, Norco and SCA Hygiene.
“Third is our progress in beginning to leverage the capabilities of our fellow companies within the UXC Business Solutions Group. Within UXC Business Solutions is a full range of Enterprise Software implementation and consulting resources. From a customer perspective, Oxygen is now more than just a leader in its SAP market niche – we’re now actively part of the largest Enterprise Software implementation and consulting group in the region with 2,500 staff and FY07 targeted revenue results for UXC in excess of $A400 million.”
Looking forward, Smith said Oxygen was forecasting continued strong growth, in line with a strong Australian economy and continuing strong demand for SAP implementation and consulting services, as well as long-term managed services as customers continued to outsource the management and support of their SAP infrastructures.
“Oxygen’s mission and differentiation is around our ability to help customers extract maximum value from their investment in SAP,” Mike Smith said. “In achieving this, our growth and market momentum are the result of our unique and differentiated culture, which values and rewards our staff for their customer focus and responsiveness as much as their individual technical excellence.
“Under UXC ownership we have been encouraged and supported in preserving and nurturing our culture, which we see as integral to the achievements of which we are most proud - such as our strong customer references, our low staff turnover, and our long track record of successful projects.
“We will continue compete successfully by being but local and flexible and by working in a close, personal and highly flexible way to help customers achieve the real business benefits and outcomes they need.”
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