Data#3 (ASX:DTL) has posted its 13th straight period of positive financial results with a record net profit of $9.8 million for the full year to June 30.
The result is an 8 per cent increase on the previous financial year and includes a 46 per cent increase in total revenue to $530.5 million.
The company has cash inflows of $19.5 million and no debt. It also increased its full year fully franked dividends by 9 per cent to $0.50. The final results are in line with the guidance announced in early July.
In a statement to the ASX, Data#3 pointed to the contribution of former Commander staff, which joined in February 2008, as boosting its performance.
“We’ve had a really outstanding result. Revenue certainly has been very strong and even when you take out the large lump of revenue that came from the Federal Government’s VSA, volume supplier agreement, the revenue growth is still very significant,” Data#3 managing director, John Grant, said.
“We have also overcome a very much lower contribution from our contracting and recruitment business as you would expect. That quantifies to about $1.5 million less than in the previous year. So we have overcome that in our results number one.
“In the last year and again this year, number two, we have a continuing investment in refreshing all the systems in our business. We are undertaking a fairly significant investment which is above normal levels of investment which apply last year and this year. Our result has been achieved in the context of those two things as well as a difficult market.”
The result is another indication the ICT industry is returning to confidence. Last week, [[artnid: 315251|CSG upped its profits by 24 per cent on the back of its acquisition of Commander’s managed services business and contract wins outside of its Northern Territory base.
The ASX-listed IT services provider (ASX: CSV) pulled in $197.3 million in revenues, up 48 per cent year on year. The company also reduced its debt by $17.3 million to sit at $39.3 million.
In its statement to the ASX the company noted there were signs in the April to June period of prolonged positive sentiment and as a result has recommenced recruitment, which was slowed in the second quarter.
Revenues were also down by 3.8 per cent to $194 million but debt was reduced to $23 million, while operating cash flow is at $20.4 million.
Despite the performance Oakton maintained a positive outlook saying it now had costs under control and revenues of pre-crisis levels along with opportunity in its strong markets of government, financial services and utilities.
However, Grant was more conservative in his view of the market going forward pointing out that while the economic sentiment may have improved the translation of that into bigger budgets has not yet materialised.
“There is plenty of obvious economic signs that would give people confidence. However, I am a little less optimistic about the first half of this financial year,” Grant said.
“Because I think that budgets for this first half were set last year and I think they will reflect the feeling that existed last year that this was going to be a protracted and lengthy recovery. Therefore, I think they are going to be tight.”