Data#3 records record result

Profits up despite challenging first 2010 half year

Listed IT services provider Data#3 (ASX:DTL) has recorded its ‘best ever’ year, bringing in a net profit after tax of $10.9 million for the year to 30 June 2010, up 11 per cent on 2009.

Revenues also grew during the year to $599.2 million, up 13 per cent, while earnings per share grew to 70.88 cents, up 11 per cent. Earnings before interest, tax depreciation and amortisation (EBITDA) were $16.3 million, up 12.4 per cent.

The figures are in line with a July market update which saw the company predict revenue growth of 13 per cent to $599 million and EBIT of $15.2 million, also up by 13 per cent.

“At the half year we expected a more difficult second half and advised that our objective was to at least equal the earning result of the previous year,” managing director, John Grant, said in the July statement said. “We are delighted that we’ve managed a particularly strong finish to the year.”

In March the company flagged challenging times ahead as it dealt with a decline in the government sector and a number of internal challenges including pressure on the commodity parts of its business — particularly in software licensing — and a lack of investment in hardware.

In an ASX statement released today, the company said that despite these challenges, its management strategy, combined with ongoing investment in new internal systems had seen improvements in operational efficiency in the 2010 financial year.

Looking ahead the company said it expected the tighter economic environment and competitive market to remain in place, as well as a continuation of the current shortage of ICT skills.

“To maintain Data#3’s position as an employer of choice, we intend to invest further in developing the expertise of our staff and in the software and systems that support the operations of the business.

“We are also committed to the relocation and expansion of our Perth and Brisbane offices, and are planning for further expansion of our Sydney office and configuration and integration centre in the 2011 financial year.”

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