Data#3 grows revenue and profit in first half of FY24

Data#3 has posted a strong first half of the 2024 financial year ending 31 December 2023.

Total gross sales increased by 13.4 per cent to $1.32 billion, with "substantial multi-cloud (public and private cloud) growth" which "provide greater opportunities for our service offerings," Data#3 said.

“We are pleased with the first half performance, reporting a record half year NPAT of $21.4 million, an increase of 25 per cent on 1H of FY23, which was unusually high having grown 38 per cent on 1H FY22," Data#3 CEO and managing director Laurence
Baynham said.

"The record result reflects good contributions across most of our business units and regions, with company gross sales growth over double industry growth rates."

"Our services and software solutions businesses performed ahead of expectations, with 67 per cent of gross sales now recurring."

"Although our infrastructure solutions business was up on the prior period, it was impacted by customers previously ordering in advance of requirements, in response to pandemic related supply chain issues."

"This slowed down ordering and decision making in the current period. Improved supply chain conditions reduced our stock levels, and our diligent management of working capital enabled us to benefit from increased interest income of $6.5 million.”

Baynham, who will retire from his role at Data#3 on 1 March 2024, commented on the company's outlook. 

“We expect technology, and specifically digital transformation combined with artificial intelligence, to play a leading role in Australia’s economic future. Although we are seeing some delays in customer decision making, we are also seeing increased tender activity which should support growing our pipeline.”

“Consistent with previous practice, we are unable to provide specific FY24 guidance at this stage. In line with previous years, we continue to expect a sales peak in the months of May and June, and our goal remains to continue to deliver sustainable earnings growth.”