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Dicker Data records another half-year of profit

Dicker Data records another half-year of profit

Its 2016 half-year total gross profit was up 4.8 per cent to $53.5 million

David Dicker - CEO, Dicker Data

David Dicker - CEO, Dicker Data

Dicker Data (ASX:DDR) has reported profit of $53.3 million during the six months ending June 30, representing another half-year of profit for the distributor.

As outlined via the ASX, this represents an increase of $2.4 million, or 4.8 per cent from the $51.1 million it reported the same time last year.

The revenue for the business was $590.3 million, up by $58.8 million (or 11.1 per cent) on the previous corresponding period.

Dicker Data CEO and chairman, David Dicker, said excluding prior period one-off integration and restructuring costs, its operational profit before tax was finalised at $18.1 million, up by 12 per cent since June 2015.

Meanwhile, net profit after tax (NPAT) increased to $12.5 million, up 24.7 per cent since June 2015.

Dicker added that the 2015/16 period saw the company sign on 13 new vendors that have contributed an increase of $24.4 million to revenues on a year-on-year basis in the first half of 2016.

As for revenues for the existing vendors, they have grown 6.7 per cent on the previous corresponding period.

“At a country level when compared to the previous corresponding period, Australia grew $54.6 million and New Zealand grew $3.5 million," he added.

"Whilst there was some growth in New Zealand for H1, one of our key initiatives for H2 will be to target further growth of the mid-market and SMB business in New Zealand."

At a sector level, the company reported further consistent grow in hardware, a profit of $52 million and growth of 12.3 per cent from the same time last year.

Meanwhile, software saw a growth of $7 million, a growth of 6.5 per cent, while its services business grew $0.6 million, a rise of 26.1 per cent.

Dicker also said, in the report, that the integration and restructuring costs after the acquisition of Express Data in 2014 are now complete, but the company is still continually reviewing its cost structures.

In addition to the target growth of the mid-market and SMB business in New Zealand, with the creation and investment in a volume business unit in the country, the company also intends the launch of Microsoft CSP in Australia as a key initiative for the second half of 2016.

Furthermore, Dicker said it the distributor is looking to on board more vendors with IIP Cloud offerings, intending to integrate these solutions into its Cloud portal.

Meanwhile the distributor also announced its intention to continue to enable its customers in their journey to build profitable and predictable subscription revenue streams via its Cloud portal; invest in dedicated resourcing to drive growth in cross vendor complex solution selling; and offer a wider deployment and configuration services to customers.

“Based on results to date and execution of above initiatives, Dicker Data expects to achieve its previous guidance of $35 million in pre-tax operating profit for FY16,” he added.

The company's shares traded at a high of $1.90 on August 24.

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