Record profits for DC but still no word yet on sale plans: Verykios
- 22 October, 2013 09:56
Distribution Central posted record breaking revenues of $252.3m Distribution Central surges over $250m mark for full year revenue for the financial year ending June 30, a 20 per cent jump on last year's $209.9m.
Managing director, Nick Verykios, said this has been due to company wide growth across all its divisions, alongside healthy margins growth - which has led to conjecture that the company may be looking at a sale.
He said that DC had seen interest from US, Asian and European businesses, but that the company would only sell when "the right client comes along".
"It's no secret we're being looked at," he said.
While he wouldn't firm on whether there had been any tangible offers on the table, the $250m mark has previously been touted as the company's "sell point". Co-founder and executive chairman, Scott Frew, told ARN recently that he builds companies to sell them and he was always willing to listen to an offer - if a prospective buyer could come up with the right price, a sentiment Verykios seems to agree with.
"If you're building a company that's not for sale, then you can't demonstrate value," he said.
"But it needs to be a company that can take the business where we can't," he said.
Verykios said it has always been the company's style to buck economic trends, and while most competitors have been content to play it safe during the global financial crisis, he believes the company has benefited from these 'potentially risky' investments.
"We've always tended to go against the grain and invest during the downturn. It's already paying off."
The company is also coming to the end of a three-year infrastructure build, which Verykios has said has been funded out of operating profits - not through borrowed cash. Already the company is seeing a good return on its investment, which includes the development of a new ERP system, ongoing development of its Cloud back-end and Big Data offerings and further development of iAsset software.
Of particular note has been the development of its unified communications division, Vivid, which was created out of the consolidation of its NetWorld Systems and Unity Systems divisions. It generated revenues of $70.7 million.
Verykios said UC, especially video calling, will be one of the key boom areas of growth for his company over the next financial year.
The ongoing growth of the company's business in New Zealand has also been a source of pride. Verykios says that he's happy that the company has reached the $10-15m mark, the critical size he feels is critical to be a major player. It has spent the last six months 'investing in people'.
"We've earned our stripes, and we now feel that we're a significant player in that market."
Following the company's successes in New Zealand and Singapore, Verykios would not be drawn on whether the company has any plans to expand into the UK or US markets.
The company already has some of its software, such as iAsset, at work in the UK and US markets, for example.
"Whether we would do it as Distribution Central, I don't know. But we could look at going into partnership with a big player, who wants to take what we do and localise it," he said.
Allan Swann is a Senior Editor at IDG Communications Australia. Follow Allan on Twitter at @allanswann.