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

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Westpac breached Banking Code of Practice in NT branch closure, putting vulnerable customers at risk

Westpac breached Banking Code of Practice in NT branch closure, putting vulnerable customers at risk

The independent body tasked with keeping bank behaviour in check ha...

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Sydney-based cyber security consultancy CSO Group is set to join fo...

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange has reached a deal with the United States Department...

Cash transporter Armaguard receives $50m lifeline to stay afloat

Cash transporter Armaguard receives $50m lifeline to stay afloat

As cash processing, storage and transport company Armaguard struggl...