Australian distributor, Dicker Data (ASX:DDR), has experienced its most successful financial year (2015) in the company’s 37-year history.
In FY 2015, the distributor exceeded $1 billion in sales and made $31.6 million in operating profit before tax.
Net profit after tax increased to $20.4 million. EBITDA was $42.6 million and revenue was up 15 per cent to $1.0776 billion for the full 2015 financial year ending December 31.
In his letter to shareholders, CEO and chairman, David Dicker, said it was a very satisfying outcome. In February, Dicker changed its financial year-end from June 30 to December 31.
“We set a goal in 2015 of over $30 million and initially projected $30.9 million,” he said. “We were able to comfortably exceed that. The integration of Express Data was completed in 2015 and the resulting company has performed exceptionally.”
Dicker recently purchased an additional 17 hectare site next door to his current Kurnell facility that measures 15,000 sqm. The new site will make way for a new 68,000 sqm facility.
“We have come close to outgrowing our current site much more quickly than I anticipated. A good sign for long term growth,” he said. "Our focus this year is to execute well and continue to refine and streamline our processes."
About 11 new vendors were brought on-board during 2015, adding an incremental $16.9 million in revenue.
At a country level, Australia grew 15 per cent ($116 million) and New Zealand grew 20 per cent ($21 million). At a sector level, hardware grew 13 per cent ($99 million); software grew 22 per cent ($38 million) and services increased 81 per cent ($2 million).
Following its acquisition of Express Data in 2014, staff
numbers rose to 460, but this decreased to 367 across A/NZ associated with a
duplication of functions. In 2015, the distributor continued to invest in new
headcount for targeted growth areas of the business.
Dicker said it was always looking for acquisition possibilities, but there's nothing specific at this stage.
This year, the distributor said it would be placing a particular focus on emerging technologies such hyper-convergence infrastructures, software defined storage and IoT.
It will also continue to invest in its Cloud strategy that involves bringing on new vendors, and investing in internal resources and structures to offer top Cloud enablement programs to partners.
“We have identified an opportunity to expand our customer base beyond traditional IT by investing in vendors that cross over the IT, security, surveillance, electrical and audio digital markets, and we see an opportunity to integrate into this parallel market,” Dicker said.