Services put Data#3 on track for further growth
- 20 January, 2017 12:12
Laurence Baynham - CEO, Data#3
Data#3 (ASX:DTL) has reported an estimated consolidated net profit before tax (NPBT) for the first half of the 2017 financial year.
In a statement on the ASX, the company said that subject to confirmation of the Discovery Technology result (62 per cent owned by Data#3) and the Data#3 group half year audit, the consolidated NPBT for the first half of the 2017 financial year is estimated to be about $8 million.
Data#3 said this estimated result is consistent with the first half projection provided at its annual general meeting in November 2016, which indicated that it expects its NPBT to be in the range of $7 to $8.5 million.
This represents a growth of about 30 per cent, as compared to the same time last year. Data#3 reported a NPBT of $6.1 million in the first half of 2016 and a Net Profit After Tax (NPAT) of $13.8 million for its FY16 financials for the year ending June 20.
The consolidated net profit after tax excluding non-controlling interests, and earnings per share, are also expected to increase by about 30 per cent as compared to the first half of 2016.
Data#3 CEO and managing director, Laurence Baynham, said these pre-audit estimates represent solid performance by the core Data#3 business, strong growth in services, and a modest profit contribution from Discovery Technology.
“We saw increased growth, in particular, around our services business," he told ARN. “This is consistent with our strategy to invest and grow our services business. The growth didn’t come from one particular deal but rather, we had consistent growth across every one of our services business units and across all our geographies."
Baynham added that Data#3 is looking to continue on its growth momentum in the second half of the year.
“We’ve seen a lot of good results coming in the first half of the year. We want to see a continuation going forward. We’ve set ourselves a strategy, which is very clear in terms of increasing or having a greater emphasis on our services business.
“We’re seeing cloud services continuing to grow at a rapid rate. We’re also seeing the strength of our scale on a national level across our consulting business, our professional services business, and our support services business,” he mentioned.
According to Baynham, these estimated results mark five reporting periods of sustained profitable growth.
“One of the key words here is, sustained. Our investors, customers and the people within our business want to have some confidence that we’re able to provide continued and sustained growth and in the last five reporting periods, we’ve been able to demonstrate that.”
The board intends to announce the audited interim results and the interim dividend on February 22.