Express Data NZ posts substantial profit

Express Data has posted a substantial increase in revenue and profit in its latest annual report – despite the report being for just nine months.

The report, for the nine months ending June 30, 2014, shows a profit of $3.2 million on revenue of $112.3 million – including $112.0 million from the sale of goods.

Express Data was acquired by Dicker Data on April 01, 2014 for $65.5 million.

The Kiwi figures are a solid increase on 2013's restated total comprehensive income of $2.1 million for the 12 month period. That profit came off a total revenue of $138.9 million, including $138.7 million from the sale of goods. A significant drop of more than $20 million in the cost of raw materials and consumables used, aided the 2014 figures.

Earlier figures, released by the Australian parent company Dicker Data for its financial 2014 ending 30 June, showed the Kiwi business had contributed more than $35 million in revenue for the new owners in the first two months after the acquisition.

Those figures highlighted sales of goods of $35,370,000 and interest revenue of $96,000 for the New Zealand operations and profit after income tax of $676,000.

Express Data changed its balance data from September 30 to June 30, hence the shortened period for the latest annual report. Dicker Data itself has just announced to the Australian Securities Exchange that it is now changing its financial year end from June 30 to December 30.

Express Data's annual report notes that during the period to March 31, 2014, the company sold inventory of more than $5 million to Dimension Data New Zealand. The two companies were under ultimate ownership of Nippon Telephone and Telegraph Corporation, until Dicker Data's purchase of Express Data.

More than $47,000 was recognised in bad and doubtful debts during the period – a drop from 2013's $91,517.

The company has a related party loan receivable of $8.2 million from Express Data Holdings Pty, payment of which is expected to be completed by June 30, 2015.

In its Q1 2015 update to the ASX, Australian parent company Dicker Data announced the combined entity was on track to exceed AU$1 billion in revenue for financial 2015 after recording stronger than expected Q1 results of AU$263 million – 17% higher than anticipated.

The company was averaging sales of almost AU$100 million a month for the first six month of the combined entity.