Data#3 has reported record earnings for the July to December 2002 half year and a profit despite taking into account a $2 million debt it was slugged with after Powerlan (Queensland) went into administration.
The IT services company is also well positioned for a positive second half to the financial year after Powerlan Ltd and the Powerlan (Qld) administrators struck a Deed of Company Arrangement under which Data#3 will receive $700,000 to $1 million over the next two financial years.
Data#3 recorded its strongest ever half year earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $3.04 million prior to accounting for the loss attributable to Powerlan (Qld).
It subsequently announced it would be offering shareholders an interim dividend of 2.5 cents per share.
Chief executive officer of Data#3, John Grant, attributed the strong results to the support of the company's partners and customers and additional contributions from contracts previously held by the joint venture, Powerlan (Qld), and now held directly by Data#3.
“In the second half we will receive an estimated contribution of $600,000 as an additional benefit flowing from these new contracts,” Grant said.
Thirty five per cent growth in services revenues over the first half of the financial year also contributed to Data#3’s strong results, he said.
“The growth in services revenue, the continuing powerful result in our core technology business and the positive steps to strengthen earnings in under-performing areas of our business give a strong outlook for the second half and augur well for the full-year result," Grant said.