Rhipe harvests a bumper full year profit

Rhipe harvests a bumper full year profit

Cloud solutions company Rhipe (ASX: RHP) has posted an operating profit of $12.8 million for FY19, up 65 per cent on the previous year.

This healthy harvest comes as the group has continued to grow across the business during the financial year, particularly its Asian focused business.

Sales were up by 28 per cent to $252.5 million during the financial year, and revenue was also up 36 per cent to $48.4 million.

The company, which provides corporate partners with end to end cloud solutions, says its revenue growth was buoyed by strong momentum in public cloud via the Microsoft Cloud Solutions Provider program.

During the financial year Rhipe's Asian sales grew by 75 per cent, thanks to this market being the company's traditional private cloud licensing business.

However, growth was also seen in Australia and New Zealand and came from the uptake in public cloud platforms like Microsoft Azure.

The board of Rhipe has announced the payment of a final dividend of two cents per share.

Looking forward, Rhipe says that it expects its public cloud business to continue to be the growth engine for the business.

The company maintains estimated guidance for FY20 to be around $16 million in operating profit.

Rhipe recently completed the acquisition of Network2Share for $2 million to get its hands on a user-friendly encryption product called SmartEncrypt developed by Network2Share.

The group intends to bundle SmartEncrypt with Microsoft Office365, Microsoft Azure and other vendor software licences.

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