A clear well-presented report with just enough detail, and thankfully free of jargon. (AS an aside: IMO one can never have too much detail.... and when i am invested i read every word.)
Revenue UP 14% and EPS up 7%. Good effort in tough period.... made easier by carry-over of wk for Banks from 2HFY11. Cash flow UP 34% is esp plaesing and remains totally debt free. The 'new-lines' of business are now earning income and one can expect more from these ventures in 2HFY12. Labour cost pressures have decreased (albeit slightly i attach importance to this as indicates skills are available should a sudden large contract eventuate. The capital required to refurbish Melbourne HQ has been accounted-for and is a one-off, as are the aquisitions.... i hope!
So what went wrong? Not a lot. Income from Govt and Financial sector(banks) declined. I am concerned as tese are clients with very deep pockets. DWS have forecast govt wk to increase over next 18months which is gratifying indeed. Av. utilisation rate dropped from 81%Q1 to 74%Q2!! Fortunately IT firms have flexibility far in excess of most other firms.
Things I'd like to know? What % of income is recurring e.g. via long-term contracts?
DWS stated focus is on 'organic growth and increased margins'. Just what i wanted to hear. In addition DWS slightly increased the dividend. I know high payout ratios have their share of detractors but DWS is debt-free. I continue to feel that management care about their shareholders.... and THAT is something i look for above everything... before investing my (diminishing) life savings. Look at DWS record over past 5 years compared with their peers. Speaks volumes.
MM.
PS. I expect DWS will move to AI on Monty's Skaffold rankings.
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