The Calian Group (TSX:CGY) kicked off what was already guaranteed to be a historic year for the professional services firm with a record $68.7 million in first-quarter revenues, up six per cent over last year.
The diversified Ottawa-based firm’s quarterly profit was up 10 per cent to $3.4 million.
“Our revenues this quarter are the highest (first-quarter) revenues in our history and the growth is all organic,” Calian president and CEO Kevin Ford told investors on a conference call Wednesday afternoon.
The company operates five main service lines: health care, training, IT, engineering and manufacturing. Mr. Ford said that each has the opportunity to grow independently of one another, but added he’s excited about the possibility of convergence and applying, for example, the company’s training expertise in the health-care sector.
Looking ahead, one of the company’s major contracts to provide health-care services to the Department of National Defence is up for renewal.
Calian has been DND’s provider for more than a decade, managing health services at DND installations across the country. Last year, its current contract was extended by another 12 months, which increased its value by $75 million.
Mr. Ford said he “expects competition” for the contract, which he speculated could be awarded in late summer or early fall.
In response to questions from analysts, Mr. Ford said Calian continues to look for acquisition targets that would either help the Ottawa company diversify its customer base or evolve its service lines.
The size of such companies, he suggested, isn’t a primary concern.
“We have the financial strength to (purchase both) the smaller (and) the larger ones.”
Calian said it expects revenues in its fiscal 2017 year to be in the range of $270 million to $290 million.
During its last fiscal year, which ended Sept. 30, Calian reported revenues of $274.6 million.