Data#3 boosts profits, dividends

Stephen Withers
Monday, 22 August 2011 13:39

IT Industry - Listed Tech

IT provider Data#3 has booked a healthy 37% profit improvement, and has raised its dividends by a similar amount.

Citing "consistently strong performance across all areas of the company's business", IT provider Data#3 has reported a 37.4% increase in after-tax profit to just short of $15 million on revenue of almost $698 million. The company has declared an interim dividend of 38c and a final dividend of 39c.

The directors' report for the year eded June 30, 2011 notes growth in all geographic regions, an improvement in gross margins (15.0% to 16.1%) thanks in part to growth in services revenues, strong cash flow, and no material debt.

At this stage, services remain a relatively small proportion of the company's business, generating less than one-fifth of the revenue that comes from selling products.

Despite the current economic and market conditions, the company plans to continue to grow by increasing its market share and "will continue to look for appropriate partnerships and acquisitions to enhance either our geographic scale or our expertise in specific areas and ultimately further improve financial performance."