Distributor Digitalblue says a total restructure of its business over the past 18 months “heavily impacted” its financial results but has also laid a platform for growth.
It now predicts it will double its year-on year-revenue in the coming financial year.
In the latest results posted to the Companies Office earlier this month, the company recorded an operating loss after income tax of $975,000 to March 2009, larger than the $82,000 loss recorded for the previous annual period.
Although its gross profit was down to $147,000 for the period, from $664,000 the previous financial year, revenue held stable at $3.57 million from $3.86 million to March 2008.
National sales manager Troydon Lill says as part of the restructure initiated 18 months ago, the company changed its accounting and inventory control systems and moved its warehousing.
“While this impacted heavily on our final results, it was a planned strategy, to build a wider and deeper foundation on which to grow for the long term and next phase of the business,” says Lill.
The recession hindered the company’s performance, and it observed marked volatility and record lows in the value of the New Zealand dollar, says Lill.
However, he says its “broad based and unique” business model enables it to continue to offer competitive prices.
Digitalblue says its turnover has remained strong because of its relationships with key retailers. “They like to purchase from us, where possible because of the service level we offer, but more importantly because of our innovative brands that we develop.”
Lill says Digitalblue carried out further restructuring at the start of this financial year in April, when he moved into the national sales manager role. This restructure involved employing an additional account manager for independent resellers, and appointing a customer services and operations representative.
Former Auckland-based general manager John Buxton is now the ANZ sales and marketing director for sister company Audion Innovision in Australia. He spends about five percent of his time in New Zealand now, says Lill.
Digitalblue has “seen immediate results” following the most recent restructuring, and forecasts 100 percent growth in revenue by the end of this financial year over the previous year, he says.
“This time of year attracts a natural increase in sales. This is based on more aggressive product management and the subsequent growth of…brands [including] Akai, Griffin, iFrogz, Blackbox, Edifier and Razer.”
The distributor also plans to take on new agencies. “We have several new brands in the pipeline waiting for us to take them to a new level in New Zealand,” he says. “Some come via our extended reach offered through [Singapore-based parent company] Ban Leong, others are from our own endeavours to offer true brand management to benefit boutique brands.”
Ban Leong, which distributes multimedia products, data storage and accesories, bought Digitalblue in 2007. As well as offices in Singapore, it has premises in Malaysia, Thailand and Vietnam.