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Dicker Data revenues to hit $1 billion in 2015: AGM

Dicker Data revenues to hit $1 billion in 2015: AGM

Company posts first quarter revenue of $263 million

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Dicker Data chairman and chief executive, David Dicker.

Dicker Data chairman and chief executive, David Dicker.

Dicker Data has forecast revenues in excess of $1 billion for the 2015 financial year at its annual general meeting.

The company recorded total revenue for the first quarter of the 2015 financial year of $263 million, according to a company statement

"Based on these revenue results we are confident of generating revenue in excess of $1 billion for FY15," a statement said.

"We see opportunity to offer (a) mix of enterprise vendors such as Cisco, Citrix, SAP and RSA into the mid-market reseller community going into 2015.

"The acquisition of Express Data has also provided an entry into the New Zealand market.

"With very little vendor product over lap part of our focus for FY15 will be to expand our vendor offering in New Zealand.

In 2014, revenue for the full year was $662.8 million, up by 46.8 per cent.

The increase was mainly attributable to the acquisition of Express Data in April.

The revenue includes a $186 million contribution by Express Data for the three months to June.

Excluding one-off acquisition related costs of $6.2 million, operating profit before tax also increased to $14.3 million, which was up 7.5 per cent.

Net profit was $5.1 million, down by 44.6 per cent due to the one-off share acquisition and integration costs.

The physical integration of the two companies was completed in September.

All staff and distribution facilities are now operating from Kurnell.

Read more: Dicker Data and Fujitsu extend distribution agreement

According to a company statement, all systems have now been consolidated and the current focus is on improving operating efficiencies for the combined business.

Further integration costs of approximately $3 million to $3.5 million are expected to be incurred in the 2015 financial year.

"As a result of the restructure and consolidation we expect to capture annual merger cost savings of approximately $13 million, of which we hope to capture 50 per cent of these synergies in FY15," a statement said.

"Focus is now shifting to driving revenue synergies, whilst simultaneously reviewing costs of the consolidated entity."

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Tags Dicker DataExpress Dataannual general meetingDavid Dicker

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