ASX-listed integrator, ComputerCorp, has turned around its financials and reported a $340,000 net profit for the year to June 30. This is up from a loss of $17.8 million last year.
ComputerCorp’s core revenues were also slightly higher year-on-year, rising from $144.2 million to $145.9 million. Its acquisition of Queensland-based reseller, Coretech, for $2.4 million in March added a further $5.7 million in revenue, bringing the total to $151.7 million.
In its financial report, ComputerCorp attributed the 12-month turnaround to a company-wide restructure and substantial cost-cutting. This included reducing staff from more than 300 to 180, as well as relocating and consolidating warehouses and logistics facilities in Sydney.
The appointment of regional sales managers over the past year, including eastern regional manager, Tony Heywood, helped drive up the sales result despite broader staff cuts, the company claimed.
Other notable financial highlights include an increase in gross margins from 16.9 per cent to 17.4 per cent over the 12-month period, as well as pre-tax earnings (EBIT) of $2.9 million.
ComputerCorp also reported a one-off hit of $400,000 as a result of its failed merger with Victoria-based reseller, Leading Solutions. The pair announced merger plans in December but called the deal off in March.