Dicker Data records strong first half for FY2014

Dicker Data records strong first half for FY2014

Revenue comes in at $224.5m, up 5.2 per cent; profits also up

Leading distributor, Dicker Data, has recorded revenue of $224.5m for the half-year ending December 31, 2013, a 5.2 per cent increase in comparison with the result ($213.5m) for the corresponding period of the 2012 financial year.

In a filing to the Australian Stock Exchange (ASX), CEO David Dicker called it "an exceptional result with increases in revenue attributable to the timing of education orders in December which occurred in January the previous period."

Dicker said the increase in revenue was also driven by the extension of its HP agreement to include the full range of HP printing and supply product at the beginning of FY2014.

This, he said, more than offset a decline in revenues from some of Dicker's traditional PC vendors, including HP.

Gross profit came at $18.2m compared with $15.9m for the corresponding period in 2012. It represented an increase in gross margins to 8.1 per cent (2012: 7.5 per cent).

Dicker noted that while the company's front end margins were down on a year-on-year basis with increased pressure from the company's competitors on pricing and keeping inventory at a moderate levels, higher revenues had meant an increase in its rebates as Dicker Data had "constantly met and exceeded" its vendor expectations that had helped offset some of the lower margins it had seen in the first half of FY2014.

Net profit before tax was $5.2m (2012: $4.7m), an increase of 11.3 per cent on the corresponding period. Similarly, net profit after tax - $3.7m (2012: $3.3m) - was also up, by 12.8 per cent. This represented a basic earnings per share of $0.0289 (2012: $0.0258), an increase of 12 per cent on the corresponding period in 2012.

Looking ahead, Dicker said in the statement: "We anticipate the market will continue to be soft, with continued decline in the PC market. However, we expect to address this issue with the acquisition of Express Data Holdings, expected to be completed on 01 April 2014, giving us access to a varied vendor portfolio."

Under the heading "Significant changes in the state of affairs", Dicker reiterates the basics of the Express Data (ED) deal. He notes that the acquisition is fully funded by Westpac Bank with a $130m facility under a trade receivables securisation program.

He also states that as a result of the acquisition of ED, Dicker has entered intoa contract to complete the last stage of its warehouse facility in Kurnell, expanding the premises by an additional 5000sqm, 4000sqm of which will be warehouse space, and the remainder office space. This, as previously announced, allows the integration of ED into one location.

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Tags Dicker DatadistributionExpress Data holdings


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