FY2007 Half Year Financial Results

Released: 13 Feb 2007

Summary

• Continued to acquire market share through a clear positioning of Oakton’s business application services capability and scale
• Record revenue (up 27.2% on Dec. 2005), EBITDA (up 34.8% on Dec. 2005) and NPAT (up 39.8% on Dec. 2005)
• Ended December 2006 with 558 staff, 135 more than the same time last year (577 staff as at January 2007)
• Successful acquisition & integration of the Clickstream business (August 2006)
• Continued to pursue acquisition opportunities
• Commenced operating Oakton’s offshore delivery capability in India (September 2006)
• Implemented a number of people initiatives that have resulted in reduced staff turnover and recruitment costs
• Record interim fully franked dividend of 10.0 cents, up 33.3% on last year
• Appointment of additional senior management and expanded internal quality and risk management processes to manage business growth and scale

Tuesday 13 February 2007: Australian IT services provider Oakton Limited [ASX:OKN] today announced a net profit after tax of $9.17 million for the half-year ended December 2006 - a 39.8% increase on December 2005.

Revenue increased by 27.2% to $47.02 million and EBITDA increased by 34.8% to $13.17 million during the period.

The strong increase in earnings was achieved through continued organic growth and the contribution from Clickstream which was acquired in August 2006. The operations of Clickstream were fully integrated into Oakton during the period and synergy benefits have already been realised.

In September Oakton’s Indian operations were established in Hyderabad. The Indian Operations are a key component of Oakton’s strategy and where appropriate, provides offshore delivery capability with increased access to skilled resources at a price point competitive with global providers.

The Oakton Board declared a fully-franked interim dividend of 10.0 cents per share, 33.3% higher than last year’s interim dividend of 7.50 cents per share. The dividend will be paid on 30 March 2007 with a record date of 28 February 2007.

Neil Wilson, Oakton’s Managing Director and CEO, said: “Oakton has a solid business strategy on which we have remained focussed. It is very much a situation of our preparation and strategy aligning well with good market conditions that is allowing us to grow ahead of the overall market rate. We have an exceptional team very focussed on both the quality of what we are doing today and the implementation of the initiatives supporting the ongoing growth of the business”

“Our underlying business continues to perform strongly and is complemented with expansion into new and existing interstate locations. The Brisbane office, opened during 2006, is on track to have 20 staff by June 2007 and is acquiring state government, local council and industry clients. Establishing operations in Canberra is planned for sometime in FY08. “

“Our acquisition strategy and pipeline remains strong and is seen as a vehicle for accelerating the achievement of many of our growth initiatives through the expansion of our existing location client base, entry into new locations, accessing additional staff, expansion of existing services and the addition of complementary services. “

Oakton Chairman, Paul Holyoake, commented on the result saying “This result affirms that our business strategy is working and on behalf of the Oakton Board I would like to thank our clients, staff and shareholders for their continuing support.”

For more information, please contact:

Neil Wilson
Managing Director and CEO, Oakton Limited
Tel: +61 3 9617 0200

About Oakton Limited: Oakton Limited is a profitable information technology company listed on the Australian Stock Exchange [ASX:OKN]. Capitalised at approximately $A370 million (February 2007), Oakton has provided Information Technology solutions for large and medium sized organisations for more than 18 years. Oakton provides a range of IT services centred around business systems. The services cover strategy and planning consulting, delivery services in solution design, custom software development, packaged software implementation, information management and system integration solutions. Oakton also provides a service offering to fully manage organisations’ operational systems. The company has offices in Melbourne, Sydney, Brisbane and Hyderabad (India).

For more information refer to www.oakton.com.au.

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