Online IT equipment retailer Harris Technology (HT8) is in the black after a year that has seen both revenue and net profit surge as the shift to remote work drove online sales.
Harris Technology’s revenue from continuing operations for the year ended 30 June 2020 was $13.6 million, an increase of 51 per cent over the previous corresponding period.
Net profit from operations was just over $1 million, a significant turnaround from the previous year, which saw the company post an operating net loss of $732,037.
The publicly-listed retailer told shareholders it was pleased to report a substantial turnaround in performance.
“We believe the foundations are in place for continued growth and success. With the fast-changing retail world and recent reports from the Australian Bureau of Statistics quoting that online sales in Australia increased by 134 per cent for the quarter ending in June 2020, HT8 is well placed to take advantage of the retail spending realignment,” it told shareholders in a statement.
The financial year ending 30 June saw the company sharpen its focus and further develop its online IT and consumer electronics operations as well as reviewing new opportunities.
Indeed, it established a “Pro-Hygiene” division in April 2020, which has proven to be successful in a very short period of time.
The sale of subsidiary Anyware Corporation in the previous year, meanwhile, allowed for the “rationalisation” of staff, warehousing and other overheads.
“This allowed management to focus heavily on developing the B2C sales channels for IT and consumer electronic products. Strong sales were experienced across the entire range of products, together with product diversification to include mobile phone accessories and consumables such as inks and toners plus gaming products. Sales of antivirus software also increased,” the company said.
In April, Harris Technology revealed it had seen a surge in revenue from its online IT and electronics sales as Australians rushed to set up home offices in the midst of the coronavirus pandemic.
In March, the company’s sales for the month increased to $1.63 million, compared to $716,000 in March 2019, the publicly listed company told shareholders at the time.
In August, the company moved to embark on a major capital raising effort to boost its inventory as it works to meet surging demand amid COVID-19.
The publicly listed retailer completed a private placement of 43.9 million additional shares at an issue price of 8 cents per share to raise roughly $3.5 million.
“HT8 has started the new financial year strongly for the business with the strong momentum of last quarter continuing into the new financial year,” Harris Technology CEO Garrison Huang said. “Our team has worked very hard to ensure the supply of all the necessary products during this tough time with the COVID crisis.
“I would like to thank our team for their hard work. Our recent private placement was completed with both institutional and private investors participating. To date, the SPP [share purchase plan] is oversubscribed.
“We would like to thank our new and old shareholders for their support and look forward to delivering good shareholder returns in the coming months and years,” he said.