DATA#3 PROFITS DURING TRANSITION

Written on the 20 August 2015

DATA#3 PROFITS DURING TRANSITION DATA#3 (ASX: DTL) has powered through a 'transitional year' and delivered a significant profit increase.

The Brisbane-based cloud and ICT service provider welcomed $870.5 million of revenue last financial year, up 4.4 per cent, and also saw its NPAT 40 per cent to $15.2 million.

Equally, Data#3's dividend was up 40 per cent to 6.3c.

An increasing take-up in cloud services, with reselling of vendor cloud subscription services bringing in $47 million, made the biggest difference in the year's revenue.

The acquisition of business and technology consulting firm Business Aspect, effective September 5 2014, also contributed $10.4 million to total revenue.

The 43-year-old company, which listed on the ASX in 1997, has in recent years been transitioning to a services business upon recognising the rapid shift to consumption based and cloud services.

Last year also marked a sharp change in the C-suite as long serving managing director John Grant was succeeded by new CEO Laurence Baynham (pictured), who was group general manager for 10 years prior and a key member of the team for 21 years.

The company anticipates growth in education and health sectors, likely backed in its investment last year in Discovery Technology, which has been pinpointed as presenting opportunities in education, retail and airport.

"We see economic conditions remaining challenging in FY16 with traditional technology investments remaining flat," says Baynham.

"However, we are seeing digital disruption as a high priority for commercial and public sector organisations, and this is attracting increased investment.

"Data#3 has access to a very large marketplace and is well positioned to address these emerging opportunities.

"Our overall financial goal for FY16 is to improve on FY15's result. As we continue to grow organically, we will also remain watchful for further acquisitions that can add value to the business and to shareholders."

Latest News

PROFIT BOOST FORECAST AT VILLA WORLD

VILLA World has forecast profit growth of 5 per cent in the first half of FY17 in an earnings guidance released to th...

WP CURVE SOLD TO GODADDY

NASDAQ-listed tech company GoDaddy has bought Gold Coast's WP Curve for an undisclosed sum.

The subscription-b...

BOARD SHAKE-UP TAKES OUT SURFSTITCH FOUNDER

ONLINE actionwear retailer SurfStitch Group (ASX: SRF) has announced a major board shake-up in a move that effectivel...

ORIGIN TO DIVEST UPSTREAM OIL AND GAS BUSINESS

ORIGIN Energy will spin off its upstream oil and gas business in an as-yet unpriced IPO.

It will allow the Sydney-...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter