Data#3, one of Australia’s largest corporate resellers, has moved to clear the air around its financial stability with predictions of solid profits ahead.
The company has been slowly climbing back into the black after being crippled by the administration of joint venture Powerlan (Qld). The first half of the company’s financial year reflected this loss – with around $2.1 million wiped off the profit sheet as a direct result.
At the time Data#3 reported an EBITDA profit of $0.9 million – however, this took into consideration a payment owed by ASX-listed Powerlan Ltd’s to the administrator of Powerlan Qld (and in turn, to Data#3) of around $1 million.
Uncertainty about whether Powerlan would front up with this money had seen investors treat Data#3 with some caution – but CEO, John Grant, is hoping that the profits the company is soon to announce will lay these fears to rest.
In a statement to the stock exchange, the company announced that it expects to yield an EBITDA profit of $3.8 million for its second half – a huge increase on the first half.
For the year in full the company expects to report an EBITDA profit of $4.7 million and a net profit between $2.2 million to $2.4 million.
“If the money from Powerlan had not come through we would have had to write off that $1 million off our results,” Grant said. “This should remove any shareholder concern.”
He said nearly every aspect of Data#3’s business was performing well.
The areas of enterprise storage and redundancy, application servers, Microsoft licensing and SAP implementations were particularly strong on a national level, Grant said.
The company’s core procurement and networking services were strong in Queensland, but Grant was hoping for some improvements in NSW and Victoria.
Grant said the company had also achieved a return on investment for its decision to open an office in the ACT earlier this year.
He said Data#3 had some strong relationships with existing Government customers that continued to yield profits, but added that winning new Government business in the present economic environment was “very competitive.”
Full results for Data#3 will be released in August.