Data#3 reports best-ever financial result
- 23 August, 2010 10:09
Queensland-based integrator, Data#3 (ASX: DTL), is on the look out for acquisitions after posting positive FY10 results.
It increased its revenue by 13 per cent, raking in $599.2 million for the financial year ending June 30. It also posted $10.9m net profit after tax, which was up by 11 per cent year on year.
Data#3 managing director, John Grant, said it had historically focused on organic growth and would consider acquisition opportunities. It has a 12-month strategy in place to extend its operations.
Its Western Australia branch is transforming into a full service business. It has also recruited staff and is moving to a new premise to take advantage of the resource activities in the state.
The integrator is also ramping up its business in NSW, which is already a strong area for the company, as well as Victoria.
Based on failed consolidation of integrators such as Commander and Leading Solutions over the past three years, Grant saw organic growth as the best bet for the business.
“Lack of success in merger and acquisition activities on a large scale in this sector created opportunities for companies like us,” he said. “Our organic growth strategy has been really well-executed and we have been quick to move on the opportunities.
“So we’ve done it better than others. Not saying that it's the only way but its historically what we’ve done.”
Grant said Data#3 is extremely tough on acquisitions especially when considering how they can culturally fit into the company.
“It is hard in integration land because it is subject to whether people in the acquired company want to do it and whether existing customers would want to transfer to the new business,” he said.
Product revenue jumped by 14 per cent, propped up by a strong licensing solutions business.
Professional services and managed services business increased by 33 per cent. Earnings before tax were up by 12.4 per cent to $16.3m.
Data#3 has reported zero debt with an operational cashflow of $44.9m.