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Data#3 has recorded its 2024 financial year as being a “considerable achievement” despite operating in what it called a “challenging economic environment”, with the vast majority of metrics up on the previous financial year.
Revenue for the 12 months to 30 June was up 0.4 per cent, year-on-year to $815.7 million, with net profit up 17 per cent to $43.3 million, according to the services and solutions provider’s financial report.
Compared to the previous financial year’s revenue of $2.5 billion, this appears to be down. However, the FY24 revenue this year is adjusted to new accounting standards, which came into effect from 1 July.
As such, the report also made note of non-International Financial Reporting Standards (IFRS), which included a 7.8 per cent rise in gross sales – which Data#3 claimed it “provides investors with additional information for the analysis of Data#3’s results of operations, particularly in evaluating performance from one period to another” – and other revenue to $2.8 billion.
“Gross sales growth of 7.6 per cent and EBIT [earnings before interest and tax] growth of 5 per cent in a challenging economic environment and without compromising gross margins was a considerable achievement for our company,” Data#3 CEO and managing director Brad Colledge said.
The business’ software solutions business reported gross sales growth over the period of 11 per cent to $1.8 billion, while its services arm was up 9.6 per cent to $375.9 million.
“Our core business remains sound, as we continue to align with our customers’ priorities, such as security, multi-cloud and connectivity and strengthen our partnerships with world-leading vendors,” Colledge said.
However, Data#3 added that sales growth was affected by delayed customer decision making across some areas of its business. For example, its Infrastructure Solutions division saw gross sales decline by 3.6 per cent to $547.4 million as “customers consumed orders made in advance of requirements following pandemic related supply chain challenges in the preceding years”.
However, when combined with its related maintenance services, gross sales were up by 2 per cent.
While Data#3 did not provide specific guidance for FY25, Colledge said the company is “well placed to continue to deliver sustainable growth as it leverages the adoption of generative AI and the flow-on opportunities for both devices and services”.
“Following the launch of ChatGPT in FY23 and Microsoft Copilot in FY24, we have seen the recent release of AI enabled PCs, with device and server technology now designed to enhance AI performance,” he said.
“Our pipeline at the start of FY25 is strong, sales activity is increasing, and we are well placed to capitalise on the market growth opportunities including in the areas of security, cloud and data centre. Investments by the public sector in new infrastructure projects should also help to grow our pipeline across all lines of business.”
Colledge added that Data#3 expects to see a sales peak in May and June, with the goal of continuing to deliver sustainable earnings growth.