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- Smartgroup (SIQ) says it will not receive a contract renewal from the Department of Education and Training (DET) Victoria
- Smartgroup CEO Tim Looi expressed his disappointment but said he remains optimistic about the company’s other long-term relationships
- The company assures the loss of the contract will not have a material impact on revenue in 2022 but it does expect an impact of less than five per cent revenue in 2023
- It also advises that it currently expects H1 2022 revenue and EBITDA to be in line with H1 2021
- Shares in Smartgroup were down 11.39 per cent to $6.50 as of 1:31 pm AEST
Smartgroup (SIQ) has said it will not receive a contract renewal from the Department of Education and Training (DET) Victoria following the completion of a competitive tender process.
The company said it has been a long-term “top 20” client of DET Victoria and is proud to have provided its services to DET Victoria over the years.
Smartgroup CEO Tim Looi expressed his disappointment but said he remains optimistic about the company’s other long-term relationships.
“We are of course disappointed that Smartgroup was not selected to continue our relationship with DET Victoria, however we have many strong long-term relationships with our diversified client base and continue to focus on customer experience as a key driver of those relationships,” Mr Looi said.
“In 2021, we renewed or extended all top 20 contracts that fell due and we have now renewed or extended the majority of the top 20 contracts that fall due in 2022, with only one still remaining for renewal later in 2022.”
The current DET Victoria contract transition date has not yet been settled.
Smartgroup assured investors that the loss of the contract will not have a material impact on revenue in 2022, but said it does expect an impact of less than five per cent revenue in 2023.
It also advised that it currently expects H1 2022 revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in line with H1 2021.
Shares in Smartgroup were down 11.39 per cent to $6.50 as of 1:31 pm AEST.
