Publicly-listed Dicker Data has unveiled more details into its billion-dollar bonanza of a half year at its annual general meeting (AGM).
The distributor revealed its updated unaudited HY20 results, with total revenue from ordinary activities up 18.1 per cent, to A$1.0059 billion, compared to its HY19 results.
This was revised slightly from a previous announcement to the Australian Securities Exchange (ASX) which claimed a rise of 18.3 per cent, to A$1.007 billion.
Gross profit was up by 24.8 per cent, to A$96.5 million, which CEO David Dicker claimed in a statement to be due to “growth in revenue and improved margin as a result of increased focus on mid-market and SMB [small- to medium sized business]".
Meanwhile, net profit before tax was up 30.4 per cent, to A$42 million, which was higher than the 2 July update of 25 per cent, to A$40 million. Net profit after tax rose 23.4 per cent, to an unaudited A$29.4 million and recurring software revenue grew 53.1 per cent, to A$225 million, for the half year.
Dicker’s operations in New Zealand also saw increases, with total revenue rising 31.7 per cent, to NZ$72.9 million, compared to the same period last year.
Net profit before tax increased a significant 95.4 per cent, to NZ$1.1 million and net profit after tax was up a similar 92.3 per cent, to an approximate NZ$800,000.
In its list of focuses for 2020, finding opportunities surrounding working from home was a new addition when compared to Dicker’s FY19 AGM.
“The shift to working from home as a result of COVID-19 has seen the digital transformation of Australian businesses rapidly accelerate,” the distributor’s AGM presentation read. “There is now a large opportunity as IT departments no longer have to secure just office environments, but home user environments as well. These opportunities were always on the horizon but have been brought forward as businesses seek to thrive in the new world.”
Dicker’s audited financials are slated to be available on 28 August. The update to the distributor’s HY20 results comes off the back of its ‘biggest March ever’ due to capitalising off the back of the remote working boom driven by the coronavirus pandemic. During its first quarter results for 2020, it announced it had made A$463.9 million.
“With many organisations enabling their workforces to work remotely we have seen a surge in demand for remote working solutions across both our hardware and software portfolios, highlighting IT distribution’s role as an essential component for business continuity,” it told shareholders at the time.
This then came off the back of its FY19 results being heralded as its “best year ever”, which saw growth across all metrics, including after-tax profit, which rose by 67.3 per cent up to A$54.3 million.