IT components manufacturer and distributor, Legend Corporation, is on the acquisition trail after posting positive FY10 results and reducing its net debt.
In the financial year ending June 30, it recorded a net profit increase of 45 per cent to $6.6 million. Earnings before tax was also up 28 per cent to $13.4 million.
The ASX-listed company (ASX:LGD) has also managed to wipe $11.6 million off its net debt bringing it down to $8.1m.
It has $12.4m in operating cash flow in its coffers that helped towards reducing the debt, which stood at $19.7m at the beginning of the year.
Legend had suffered a huge financial blow several years back after a harrowing performance in 2007.
At the time, CEO, Bradley Dowe, blamed the company’s previous misfortunes on the market's hesitance in relation to the Microsoft Vista operating system.
Dowe said the positive result reflected the company’s improved operational performance in all divisions. He also expressed its intentions to expand into new product lines into areas such as racks, UPS appliances and other related products.
“The focus on strengthening the balance sheet, places the group in a strong position to implement our growth strategy,” Dowe said. “The strong result combined with our low debt and a recovering economy positions Legend for both organic and potential acquisitions. “We are confident that the strategies we have in place with each of our businesses positions the group well for the future.”
He said it would look at acquiring companies that are aligned with its existing capabilities.
"They would be similar to our existing business," he said. "We're still focused primarily on the Australian market and to a lesser extent, the New Zealand market."
The company has also expanded its Perth warehouse to a new 3200sqm facility. Its previous warehouse was 800sqm.
"We're going to be providing higher levels of availability in the Perth market," he said. "Our product range is very wide and we're looking to maintain 4000 popular lines in Perth.
"For our channel partners we'll continue to deliver new service initiatives and we're confident they'll be valuable to our customer base."