VITA GROUP SHARES SURGE UPON RESULTS

VITA GROUP SHARES SURGE UPON RESULTS

VITA Group (ASX: VTG), the Brisbane telco retailer tied up with Telstra (ASX: TLS), saw its share price surge 12 per cent upon releasing its half year results.

Just after midday, the company's share price stabilised at around $3.20, reflecting a gain of just over 7 per cent.

The operator of Telstra stores and business centres saw its revenue increase 8 per cent from the same time last year to $344.1 million. Profit after tax grew 10 per cent to $21.4 million.

Vita Group will purchase another five Telstra stores, taking its Telstra portfolio to 107.

The company held no debt at the end of the half, indicating it's ripe to move on its strategy.

"We are pleased to deliver a strong result, in line with our clear strategy. At our core, we are a consultative-sales organisation providing our customers with holistic solutions," says Vita Group CEO and founder Maxine Horne.

"Further optimisation of the portfolio is expected, with acquisitions, divestments, and closures likely. Vita's clustered network of stores enables an intensity of leadership to drive greater productivity and exceptional customer experiences."

Vita Group recorded growth across all its segments, but the key driver was its small-to-medium business (SMB) and enterprise channels. They grew by 35 per cent and 16 per cent respectively.

SMB is a cornerstone of Vita Group's strategy going forward, and the company says it's working with Telstra to evolve the strategy for this channel. It expects retail points of presence and enterprise expertise will play a more prominent role in servicing SMB customers in the future.

Late November last year, the company acquired three Telstra-branded stores following changes to Telstra's licensed channel network. It has since closed one of these.

Because of these new commercial terms negotiated with Telstra last year, Vita Group expects a trimming of its profits on a per connection basis in the second half.

Vita Group's board declared a record interim dividend of 9.20c per share.

This represents a 60 per cent increase on the prior year. The dividend will be paid on April 7 from a record date of March 10.

Businessn News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

From pandemic side hustle to multi-million dollar business: Meet Ling Fung
Partner Content
Ask any parent, and they’ll tell you: preparing for a new baby is no easy task.&n...
Metro Baby
Advertisement

Related Stories

Sydney's Top Companies revealed

Sydney's Top Companies revealed

Rising interest rates, the ascent of large carbon emitters, sustain...

Sydney Top Companies 1-10

Sydney Top Companies 1-10

With Commonwealth Bank (ASX: CBA) and Westpac (ASX: WBC) alone acco...

Sydney Top Companies 21-30

Sydney Top Companies 21-30

As much as the public discourse has tilted against coal as investor...

Sydney Top Companies 31-40

Sydney Top Companies 31-40

2022 has been a boom year for insurance brokers and natural gas pro...