Menu
Dicker Data posts strong profit result despite lower revenue

Dicker Data posts strong profit result despite lower revenue

Net profit up 11.7 per cent to $9.2 million, while revenue falls slightly

Dicker Data has posted strong full-year results with a net profit of $9.2 million despite lower revenues and difficult economic conditions.

The net profit result was up 11.7 per cent on the previous year’s 8.3 million off the back of a continued strategy to align revenue with more profitable product lines and an agreement with HP which extended their distribution agreement to include access to the full range printing and supply products to resellers.

Revenue for the year was $452 million, down 0.9 per cent on the same period last year. This was a solid result given the downturn in PC sales in SMB sectors impacting revenues from some of our key vendors. Most of the decline came from HP Personal Services Group and Toshiba. This was significantly offset by an increase in revenues from Lenovo (new vendor since June 2012) and strong education orders in second half of FY13, resulting in an increase year on year in revenue for the second half.

The dividend paid for the year was $0.0625 per share, an increase of 16.6 per cent on the previous year.

In August 2012 the company entered into a contract to extend the current warehouse facility by an additional 5000sqm.

The extension more than doubled the existing warehouse capacity and sets the company up for future growth. Construction started in September 2012 and the project was completed on February 20, 2013.

CEO David Dicker was upbeat despite warning of another difficult year ahead for the company.

“The last year has been a pretty difficult one, with economic conditions still subdued,” he said. “However, as promised in our H1 report, we exceeded last year’s results, and by almost $1m. In the current economic climate this is an outstanding result by everyone at Dicker Data.

Dicker pointed to an improve in economic conditions after the election and the HP deal as reasons for optimism.

“The year ahead still looks difficult, but there should be some improvement after the Election. Despite relentless negativity in the media, I remain confident that conditions are not that bad and are steadily improving,” he said.

“The share of our business with other vendors had a pleasing increase delivering 40 per cent of our revenue with HP providing the rest. We finally got access to HP’s printers and their supplies products. We now have the full HP range.

“Our shares have been trading extremely well and closed at $0.90 on June 28. As we listed at $0.20, this is a very satisfying outcome, although we are still struggling to convince the analyst community.”

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags Dicker Datasmbhewlett packardfull year resultsDavid Dicker

Upcoming

Slideshows

In Pictures: Houston, we have a bug - 9 famous software glitches in space

In Pictures: Houston, we have a bug - 9 famous software glitches in space

There’s never a good time to run into software bugs, but some times are worse than others - like during a mission to space. Spacecraft of all shapes and sizes rely heavily on software to complete their objectives. But those missions can be quickly ended by the simplest of human errors when writing code. The omission of an overbar here or overflow error checking code there can mean the difference between success or failure, not to mention the loss of hundreds of millions of dollars, years of work and, on manned missions, human life. Use the arrows above to read about 9 examples that show that, despite the care with which these systems are built, bugs have occurred in spacecraft software since we started to fling rockets into space - and will, no doubt, continue to crop up.

In Pictures: Houston, we have a bug - 9 famous software glitches in space
IN PICTURES: Windows 10 Sydney launch

IN PICTURES: Windows 10 Sydney launch

Tech lovers and party-goers alike headed down to Mrs Macquarie's Chair to be part of the world-first Windows 10 Launch Party. The night featured a presentation by Microsoft Australia managing director, Pip Marlow, DJs, live demonstrations and digital artistry by Lister.

IN PICTURES: Windows 10 Sydney launch

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments