ASX-listed Vita Group (ASX-VTG) has attributed the majority of its full-year growth to acquiring Apple reseller chain, Next Byte.
The company experienced a 10 per cent increase in business in the year to June 30 and recorded full pre-tax earnings of $18.2 million. The group’s revenue growth increased by 57 per cent to $311.2 million.
Vita CEO, David McMahon said growth was predominantly driven by its Next Byte Apple reseller chain, which it acquired in September last year. Vita is the also the parent company of Fone Zone.
“We expect to see annual store sales growth on the back of the continued popularity of the Apple product with consumers,” he said. “We also expect to improve the performance of the Fone Zone business.”
Vita is undertaking a Fone Zone store optimisation program of its bottom 20 per cent and low performing stores. Stores will either be relocated, rebranded as Next Byte or closed in order to boost Fone Zone’s performance. The retailer has 146 national outlets.
“We’re still going through that process and we will expect to finish that by the end of September,” McMahon said.
The company also plans to expand the Next Byte chain by adding another eight stores this financial year. There are currently 23 outlets nationally.
McMahon said he would look to expand the brand into regional areas in Queensland, NSW and Victoria.
“We’re out in the market place looking at the various real estate and availability for the space,” he said.