Express Data buyer Dicker Data reveals "exceptional" financials
Dicker Data, the Australian distributor currently in the process of buying Express Data, has recorded strong revenue growth for its half year to 31 December.
The results show a revenue increase of 5.2% year-on-year to AU$224 million, with gross profit increasing to $18.2 million, compared with $15.9 million for the corresponding period in 2012.
In a statement to the Australian Securities Exchange, Dicker Data chief executive David Dicker said the 'exceptional result' of revenue increases was attributed to the timing of education orders in December which occurred in January in the previous period.
An extension of the company's HP agreement to include the full range of HP printing and supply product at the beginning of FY14 was also driving the increase in revenues, he said.
“This has more than offset our decline in revenues from some of our traditional PC vendors, including HP.”
Dicker said the gross profit increase represented an increase in gross margins to 8.1% from 7.5%.
“Whilst our front end margins were down on a year-on-year basis with increased pressure from our competitors on pricing and keeping inventory at moderate levels, higher revenues has meant an increase in our rebates as we have constantly met and exceeded our vendor expectations that have helped offset some of the lower margins we have seen in the first half of FY14.”
Dicker says he anticipates the market will continue to be soft, with continued decline in the PC market.
“However, we expect to address this issue with the acquisition of Express Data Holdings, expected to complete on April 01, giving us access to a varied vendor portfolio.”
Dicker Data's shareholders will meet on March 14 to vote on details of the proposed acquisition which would see Dicker buy both the Australian and New Zealand operations and Express Online.
The deal would give Dicker its entrance to the New Zealand market and make it one of the largest distributors of IT products in the Australian market.