Mobile phone, accessory and IT distributor, Cellnet Group, has reported an after-tax profit of $5.1 million for the first half of the 2003-04 financial year.
Group revenue was up 33 per cent from the same period last year, increasing from $154.8 million to $205.7 million.
Cellnet chairman, Darryl McDonough, said that the results were encouraging, although the business still had challenges to overcome.
“This includes the loss of the Nokia Australia distribution contract, which took effect from the end of January this year,” he said. “That contract accounted for less than 15 per cent of the after-tax profit figure for the half year.”
The company was also affected by a $1.3 million after-tax write off for obsolete stock last year.
However, the continued upturn in the mobile handset market has given the company reason to feel optimistic.
“This has had a positive impact on our Telco division, which recorded total sales of $129.3 million for the first half, up from $95.7 million in the previous corresponding half,” managing director, Stephen Harrison, said. “This is an increase of 35 per cent.”
The company is undertaking a number of new growth strategies, in an attempt to boost sales growth.
“This will include organic growth with the current vendors that the company has on board,” Harrison said.
The company will also focus more on its own brand of Cellnet accessory products, and has a number of acquisitions on the table.
“We’re expecting to make at least one acquisition before June,” Harrison said.
The company has also signed a 12 month lock-in contract with Lexmark.
“Basically we’re very upbeat; we’re moving forward,” Harrison said. “The strategy and management changes that we’ve made in the last six months have started to bear fruit.”