itX reports double-digit revenue and profit growth
- 14 July, 2008 16:29
Listed NSW-based distributor, itX (ASX: ITX), has posted a 57 per cent increase in net profits for the full-year to June 30.
According to its unaudited end-of-year results, the company experienced a 17.3 per cent increase in year-on-year revenues to $107.9 million (up from $92 million). Pre-tax earnings saw even stronger growth, chalking up a 46.5 per cent rise from $6.5 million to $9.6 million over the same period.
After-tax profits made the biggest climb, from $4.2 million to $6.7 million. itX managing director, Laurie Sellers, said most of its big product lines had finished up with sturdy results.
He said a strong second-half and June trading period also helped the distributor to beat its record pre-tax results for the second half of last year by just over 12 per cent.
"Picking up VMware in the past year has made a contribution as well; it was by far the strongest and made up for shortfalls elsewhere in lesser products," Sellers said. "Sun also put in a good performance, particularly the business we do ourselves around our channel development partners."
itX's acquisition of hosting provider, ICO International, in July last year for $1.9 million also proved fruitful and added nearly $1 million to gross margins, he said.
"It has been tougher over the past year - we've been fortunate with the results," Sellers said. "It'll get tougher yet."
Last month, itX purchased Briell Marketing for $7 million. Its cash balance now sits at $5.7 million.
Sellers said he expected Briell, a specialist printing distributor and marketing services provider, would be a significant contributor to revenue in the new financial year.