Strong sales of new Apple products, such as the iPad, have helped drive revenue for reseller, Next Byte and its parent company, Vita Group.
“The performance of Next Byte indicates we are turning around the performance of the business,” Vita Group CEO, David McMahon, said.
Despite a decline revenue from the previous year, which saw the closure of three Next Byte stores during the last 12 months, average revenue per store grew 10 per cent. The company put this down to strong sales of Apple products like the iPad. There are 19 Next Byte stores across the country.
Overall, Vita Group’s earnings before tax was up 22 per cent to $17 million and net profit was up 42 per cent to $7.7 million. The Group also managed to reduce its net debt by $12.9 million and operating revenue was down 2 per cent to $291.7m.
Fone Zone, One Zero and T stores also sit under the Vita Group umbrella. All up, the Group maintains 171 retail locations after closing down 19 stores across Fone Zone, One Zero and Next Byte.
During FY10, the Group opened 13 new T stores, eight Telstra Licensed Stores and a Telstra Business Centre.
McMahon said a key focus for FY11 was to continue the rollout of its new T stores.
“Having finalised Vita Group’s new dealer arrangement with Telstra in the first half of FY10, our focus on the second half was executing on the rollout of the new T stores that will positively transform the company over the next few years,” McMahon said. “Having reduced Vita Group’s debt over the past 12 months, and the continued rollout of the new T stores, the company is well placed to grow shareholder value.”
The company highlighted retail trading conditions would continue to be challenging due to consumer confidence, but indicated smartphones and new computing products as market drivers.
Some of its key priorities for FY11 include improving the Next Byte retail format and footprint along with products and services.