Publicly listed technology solutions provider, Data#3 has revealed another record full year result as net profit lifts 30 per cent to $23.6 million for the financial year ending June 30 2020.
Revenue rose 14.9 per cent to $1.6 billion. This is in line with the company's expectations revealed last month.
Data#3 CEO and managing director, Laurence Baynham said the results demonstrated the company’s inherent strength and relevance of its solution offerings in an evolving market, particularly noting its growth in public cloud as a highlight. Public cloud revenues grew 60.4 per cent to $581 million.
This growth comes as Data#3 recently became one of just four Microsoft partners in Australia, and 71 globally, to attain the highest level of Microsoft Azure Expert Managed Services Provider (MSP) certification.
Meanwhile, software solutions grew 25 per cent to $984.7 million; infrastructure solutions increased 8.7 per cent to $413 million; project services grew 8.8 per cent to $59.4 million; support services decreased 19.6 per cent to $86.6 million; recruitment and contracting increased 10.2 per cent to $58.9 million; Discovery Technology grew 12 per cent to $5.1 million and Business Aspect took 38.6 per cent tumble to $16.2 million.
Baynham further added it had made headway with a number of its strategic business improvement initiatives such as implementing a customer success framework to help measure and align its services to customer business requirements.
“We remain confident in the company’s longer-term strategy. We have a robust business, no material debt, solid long-term customer relationships, committed supplier partnerships, and a highly experienced and productive team,” he said.
“Our expectation is that technology will play a major role in Australia’s economic recovery from the pandemic, and we remain well positioned to capitalise on those opportunities. The timing of the recovery is less certain, and consequently we are unable to provide meaningful commentary on our FY21 outlook at this stage.
“Our long-term financial goal remains to deliver sustainable earnings growth.”
One of Data#3's priorities for 2021 financial year is to improve its operational performance with system enhancements, moving application workloads to the cloud. So far, Data#3 has been running Microsoft Dynamics365 for its financials, and plans to upgrade some of its transactional systems to Dynamics365.
Data#3 chairman Richard Anderson added the company’s performance in both increased profit and solid underlying cash flow, delivered a significant increase in dividend of 29.9 per cent, bringing the total fully franked dividend for the year to 13.9 cents per share.