Dicker Data slashes headcount

Dicker Data has cut 110 staff from its combined headcount since acquiring Express Data in April 2014 – with redundancies accounting for the majority of AU$4 million in restructure costs.

The figures are revealed in Dicker Data's Preliminary Final Report for the year ended 31 December 2014.

Pre-acquisition Dicker Data had a headcount of 100 staff. Following the acquisition of Express Data headcount increased to 460 staff.

"During the last nine months there has been a progressive reduction in headcount, with gradual redundancies associated with a duplication of functions," Dicker Data's report notes.

"Current headcount across Australia and New Zealand is 350.

"During the six month period to 31 December 2014 we incurred additional one-off non-recurring restructure costs of approximately AU$4 million.

A further $500,000 in redundancy costs was incurred in January.

No specifics about where the headcount reductions were made were included in the report.

The report says revenue for the consolidated entity for the six months to 31 December 2014 was AU$498.3 million – up 121.8% on Dicker Data's figures for the same period the previous year. Gross profit for the six months was AU$45 million, up from $18 million the previous year.

Of the AU$246 million revenue relating to the Express Data vendors, AU$68 million was contributed by New Zealand.

Dicker Data has changed its financial year, resulting in a shortened reporting period for this lot of results.

In Australia, the revenue contribution from Dicker Data's vendors, as opposed to that contributed by Express Data, finalised at $252 million, up $28 million on the previous year. Underlying EBITDA of AU$16 million was reported for the period.

The company has projected to achieve AU$1 billion in annual revenue for a full financial year.