MOQ revenue rises as profit tumbles into the red

MOQ Limited has seen its revenue rise 18 per cent to $81.9 million while net profit after tax was $6.4 million in the red for the financial year, ending 30 June. 

Earnings before tax (EBITDA) also dipped $3.8 million into the red. 

Specifically, services revenue jumped 23 per cent to $54.8 million while annuity revenue increased 29 per cent to $26.1 million for FY22. 

MOQ said the revenue achievement was a record result for the company despite its disappointing performance in the first half of FY22 that involved a write down and provisions of $3.5 million from professional services contract cost overruns. 

In February, MOQ raised $6 million to better capitalise on the business and support its ‘back on track’ turnaround plan, which involved a number of initiatives to improve operational controls and project governance. 

MOQ highlighted its Microsoft partnership as underpinning its growth, which was further recognised in February when it achieved Azure Expert MSP certification, joining four other partners in Australia. 

From June to August, MOQ was the centre of a bidding war between Atturra and Brennan IT, with the latter eventually winning out shareholders with an offer of $0.075 cents per share, valuing the deal at $23.3 million.

During the bidding war, Atturra put in a bid to fully acquire MOQ for $15 million on 30 June in a move that could create "one of Australia’s largest IT services businesses".

Atturra made a revised offer on 5 August, increasing it by 20 per cent to $0.06, pushing the deal price to $18.6 million.

Brennan IT stepped up its bidding game offering $0.066 cash per share, valuing the business at about $20.5 million on 8 August.

Atturra fired back stepping its bid up to $0.070 per share, approximately $21.7 million.

MOQ ended up in to a scheme implementation deed with Brennan IT in a deal worth $23 million, recommending to shareholders at the time to vote in favour of the new deal in the absence of a superior proposal.

On 16 August, Atturra stated it wouldn't exercise its matching right under the deed.