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Hewlett-Packard NZ posts $4.66m net profit loss

Wed, 31st Mar 2021
FYI, this story is more than a year old

Hewlett-Packard New Zealand has recorded a $4.66 million dollar loss in net profit for the year ended 31 October 2020,  a sharp drop from the $3.57 million net profit the company recorded in 2019.

The company pulled in a total of $143.79 million revenue for the period, up from $139.45 million in 2019. Revenue from the sale of goods totalled $88.78 million, up from $82.69 million in 2019. Revenue from the sale of services dropped to $54 million, down from $56.55 million in 2019.  The company deferred its income tax.

The company also faced increased costs in other parts of its business. Cost of sales also rose by $3 million and administrative expenses reached $28.8 million - a $9.48 million increase from 2019.

Employee expenses totalled $18.16 million, up from $14.49 million in 2019. In this category, the employee benefits expense took out the largest share, rising to $15.88 million, up from $13.48 million in 2019.

The financial statements also recognises major events during the financial period, such as HPE New Zealand's and Cray New Zealand, the the COVID-19 outbreak.

The financial statements note, “On 20 December 2019, Hewlett-Packard New Zealand (HPE) entered into an agreement with a related party, Cray New Zealand Limited, whereby Cray sold its business for a total consideration of $658,657. The effective date of acquisition and transfer of business assets was 1 January 2020.

In reference to the COVID-19 outbreak, the company writes:

“We are unable to predict the extent to which the global COVID-19 pandemic may adversely impact our business operations, financial performance and results of operations. The COVID-19 pandemic and efforts to control its spread have significantly curtailed the movement of people, goods and services worldwide, including in most or all of the regions in which we sell our products and services and conduct our business operations.

“Although the immediate impacts of the COVID-19 pandemic have been assessed, the long-term magnitude and duration of the disruption and resulting decline in business activity is still highly uncertain and cannot currently be predicted.

“As this pandemic endures and continues to have an impact on global economic activity, the extend to which COVID-19 adversely impacts our future business operations, financial performance and results of operations is uncertain and will depend on many factors outside the company's control.

On 6 April 2020, Hewlett-Packard New Zealand and Australia transferred 170,756,522 fully paid ordinary shares held in Hewlett-Packard New Zealand, priced at US$1 per share, to Hewlett-Packard The Hague B.V.

The company also issued one ordinary share on 29 April 2020, with an issue price of $52.55 million.

*Figures in this story have been rounded.

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