Managed IT services provider tTech Limited at the end of its first quarter ended March delivered net profit of $6.1 million, bouncing back from a disappointing loss of $4.8 million for the same period last year.
Revenues for the three-month period also grew near 21 per cent to total $118.3 million.
The company's management, satisfied with the performance, has credited a change in its management structure, increased client acquisition and retention and the tightening of operational efficiencies among the key factors responsible for the turnaround.
In December 2022, following the departure of Christopher Reckord, Norman Chen assumed the role of acting CEO after previously serving as director of technical services for the company.
"We are pleased with this growth, which reflects our focus on client acquisition and retention, as well as our ability to provide value-added IT outsourcing services to our clients. This improvement in our financial performance is a testament to our commitment to cost management and operational efficiency," Chen said in an interim report to shareholders.
"In Q1 2023, we continued to acquire new clients across various industries, including finance, health care, retail, and government. While government has not traditionally been a target market for us, we see significant growth potential in this sector and have started to build relationships with government agencies, and our sales team is actively pursuing IT outsourcing opportunities with these agencies. We will continue to focus on building strong, long-term relationships with our clients and providing them with the highest level of customer service and support," he further outlined in the report.
In the wake of heightened security concerns across businesses, the IT company said it continues to invest in advance security products as it implements new measures to bolster the cyber-security posture of its clients. "We have also been conducting regular vulnerability assessments and penetration tests to help prepare our clients to be compliant with the Data Protection Act which comes into effect on December 1, 2023. These measures have helped them to stay ahead of the evolving threat landscape, providing increased protection from cyber security attacks such as ransomware."
Maintaining a positive outlook, the company's focus, according to the acting CEO, is to continue focusing on client acquisition and retention, product development, employee development, and cost management as it strives to become a leading global information technology outsourcing company. He cited some groundwork laid by the team in 2022, as instrumental in positioning the company for further success in 2023.
"We implemented several cost-saving measures in the final quarter of 2022 to enhance our financial performance. These measures included negotiating better pricing with suppliers, optimising our inventory management system and streamlining internal processes. We are delighted that these measures have yielded positive results as demonstrated by the increased profitability we achieved in the first quarter of 2023. We will continue to monitor our costs closely and make adjustments as necessary to maintain our financial stability while providing high-quality services to our clients," he said.
At its upcoming annual 'TechCon' conference scheduled to take place on October 4, 2023, the company is looking, as is custumary, to bring together industry leaders, IT professionals, and cybersecurity experts to share insights and best practices on the latest trends and innovations in the technology sector.