Data#3 looks for long term growth

Data#3 dodges economic downturn, posting record profits and increased its dividend

ASX-listed integrator, Data#3, has side-stepped the economic doom and gloom, posting record half-year profi ts and increasing its dividend by 11 per cent.

Data#3’s revenue grew 46 per cent to $230 million and after-tax profi ts were up 9 per cent to $4 million in the six months to December 31.The integrator predicted the results earlier this year, attributing the performance to its decision to recruit former Commander staff to expand into SA and WA last year.

CEO, John Grant, pointed to the company’s ability to achieve comparable year-on-year revenue growth as a key strength.

“Contract product procurement, is one of the areas in the market that has been hit very badly. For us, the government contracts we have, particularly the contract we have here in Queensland across whole of government, has really sustained volumes and revenues,” he said.

“But probably the most influential over time is our managed services growth. It is the area of the business where we have gained a number of contracts, and longterm contracts, where revenues have not really started to flow yet. They will start to flow in the second half and beyond so we are pretty pleased from a strategic point of view about the repositioning of revenue around the managed services business.”

Data#3 experienced growth across its software licensing division, which was up 87 per cent to hit $116.5 million. Infrastructure solutions also jumped 25 per cent to $91.9 million, while the integrator’s people solutions arm was up just 1 per cent because of a softening recruitment market.