DATA#3 PROFITS DURING TRANSITION

DATA#3 PROFITS DURING TRANSITION

DATA#3 (ASX: DTL) has powered through a 'transitional year' and delivered a significant profit increase.

The Brisbane-based cloud and ICT service provider welcomed $870.5 million of revenue last financial year, up 4.4 per cent, and also saw its NPAT 40 per cent to $15.2 million.

Equally, Data#3's dividend was up 40 per cent to 6.3c.

An increasing take-up in cloud services, with reselling of vendor cloud subscription services bringing in $47 million, made the biggest difference in the year's revenue.

The acquisition of business and technology consulting firm Business Aspect, effective September 5 2014, also contributed $10.4 million to total revenue.

The 43-year-old company, which listed on the ASX in 1997, has in recent years been transitioning to a services business upon recognising the rapid shift to consumption based and cloud services.

Last year also marked a sharp change in the C-suite as long serving managing director John Grant was succeeded by new CEO Laurence Baynham (pictured), who was group general manager for 10 years prior and a key member of the team for 21 years.

The company anticipates growth in education and health sectors, likely backed in its investment last year in Discovery Technology, which has been pinpointed as presenting opportunities in education, retail and airport.

"We see economic conditions remaining challenging in FY16 with traditional technology investments remaining flat," says Baynham.

"However, we are seeing digital disruption as a high priority for commercial and public sector organisations, and this is attracting increased investment.

"Data#3 has access to a very large marketplace and is well positioned to address these emerging opportunities.

"Our overall financial goal for FY16 is to improve on FY15's result. As we continue to grow organically, we will also remain watchful for further acquisitions that can add value to the business and to shareholders."

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