Data#3 delivers record profit with revenues
over $1 billion
August 23, 2017
BRISBANE, Wednesday 23 August 2017: Australian business technology solutions leader Data#3 Limited (ASX: DTL) today announced record results for the year ended 30 June 2017 (FY17), with the company delivering sustained profit growth and a further strategic shift towards services.
FY17 – growth across all key metrics
• Revenue up 11.7% to $1.1 billion
• Gross profit up 8.4 % to $158.9 million
• NPBT up 15.0% to $22.4 million
• NPAT up 11.2% to $15.4 million
• EPS up 11.2% to 9.99 cents per share
• Strong balance sheet with minimal debt
• Total dividend up 11.3% to 8.90 cents per share, fully franked
• Total shareholder return of 72.7%
Commenting on the FY17 result, Data#3 Chief Executive Officer and Managing Director Laurence Baynham said:
“We are very pleased to report another year of solid revenue growth and record profit in our 40th year of
operation. We have now delivered six consecutive half year reporting periods of growth. In addition to
delivering strong financial results, we are also pleased with our progress against our strategic objective to
increase our services related business.”
Continued sustainable growth in FY17
In FY17, total revenue was up 11.7% to $1,098.2 million, with product revenue up 12.4% to $889.2 million and services revenue up 9.5% to $208.1 million. Total cloud-based revenues increased by 71.3% from $99.0 million to $169.5 million.
Total gross profit (excluding other revenue) increased 8.4% to $158.9 million, and total gross margin decreased marginally from 14.9% to 14.5%.
Product gross profit increased by 2.8% to $72.5 million and services gross profit increased by 13.6% to $86.3 million.
The revenue and gross profit growth drove consolidated NPBT up 15.0% to $15.4 million, and NPAT (excluding minority interests) up 11.2% to $15.4 million.
Total dividend increased by 11.3%
Reflecting the company’s financial performance and strong balance sheet, Data#3’s directors declared a final fully franked dividend of 5.55 cents per share, bringing the total dividend for FY17 to 8.90 cents per share fully franked. This represents a payout ratio of 89.1%. The final dividend will be paid on 29 September 2017, with a record date of 15 September 2017.
Data#3’s Chairman Richard Anderson said: “Data#3’s performance both in increased profit and solid underlying cash flow has allowed an increase in total dividend to 8.90 cents per share. Combined with a very strong share price performance, this provides shareholders with an outstanding return for the year.”
Delivering key operational milestones
Commenting on the company’s FY17 performance, Mr Baynham said: “The FY17 results reflect the company’s ongoing strategy of transitioning from primarily a product centric approach to an increasingly service centric approach in a rapidly changing IT environment. These results are also a testament to the very dedicated and skilled team of people we’re proud to have at Data#3.
“2017 represents several milestones for Data#3, including 40 years in business and 20 years on the ASX. I am therefore pleased to add to these milestones our achievement of $1 billion in revenue and a record profit,” he said.
Long term objectives on track
Mr Baynham confirmed: “We are currently on track with our strategic plan which contains three long-term objectives, being to deliver sustained profit growth; to grow services revenue with an increase in annuity and an increase in margin; and to grow cloud services revenues.”
Outlook for FY18
Mr Baynham added: “We see economic conditions remaining relatively stable in FY18, with traditional technology investments remaining flat. However, we are seeing digital technologies continuing to lead business transformation in both commercial and public sector organisations. Data#3, together with the consulting team at Business Aspect, are well positioned to enable this transformation and capture new investment.”
“Our overall financial goal for FY18 is to continue to deliver earnings growth and returns to shareholders,” he said.
