RXP Services said growth in higher margin digital services helped deliver stronger earnings for full year 2019.

For the year to 30 June, Ebitda rose 26.2 per cent off flat revenue of $141.1 million.

However, a $10.8m impairment charge saw the company post a net loss of $1.4m.

Also impacting reported profit was a provision for doubtful debt of $1.2 million associated with a single client project, though RXP said it is in discussions with the client and “remains hopeful of full settlement”.

“Over the past 12 months we have focused on improving the quality of our revenue, which is now more predictable and more resilient. We have been able to grow our digital transformation work, and this now accounts for around 80 per cent of our total revenue,” said CEO Ross Fielding. “This means we now have less reliance on large consulting agreements.”

Fielding added that investing in digital and sales capabilities was paying off, with clients including DHHS, VicRoads, Aurora Energy, The Smith Family, Sydney Bridge Climb and H&R Block added to the roster.

“The growth in digital, combined with an organisational realignment that has improved operational leverage in the business, has meant we have been able to achieve our earnings guidance and deliver strong growth in underlying earnings, as well as deliver improved margins and strong staff utilisation levels,” said Fielding.

The company expects its digital investments to deliver “double digit earnings growth” over full year 2020, Fielding added.