In distinct contrast with DWS last week, everything was going the right way in SMS Management & Technology’s latest half-year result. The utilisation of its consultants rose from 81% to 84%; contracts won during the period rose 21% to $212m; revenue rose 15%; and operating and net profit both rose 48% (reflecting the operating leverage inherent in these businesses due to relatively fixed labour costs).
Operating profit up 48%
Shift to managed services continues
Cash flow weak – apparently mostly due to timing