Data#3 preliminary profit outlook rosy

IT services outfit Data#3 is projecting a healthy outlook for its full year financial performance. The company expects to exceed the record result it achieved in the 05/06 financial year.

Data#3 recorded pre-tax profits of $3.8 million on revenues of $112.8 million in the six months to December 2005.

The company's annual revenue was $239 million with pre-tax profits of $8.2 million. The December 2005 results represent a year-on-year increase of 22 percent and 37 percent respectively.

At the company’s annual general meeting, John Grant, managing director Data#3 said the company expects to deliver another record half year result and are predicting a profit for the first half up around 10 percent on the previous year.

Chairman Richard Anderson also provided an update on the progress of the on-market share buy-back, which will be introduced once the year-end reports have been finalised and dividend declared. The buy-back will continue for a 12 month period.

"We consider an on-market buy-back to be the best way to deliver improved shareholder return,” said Anderson. “We also intend to maintain our established dividend payment practice.”

All shares purchased under the on-market buy-back will be cancelled, said Anderson.

The board also announced the retirement of non-executive director Graham Clark at the AGM and acknowledged his outstanding contribution to the company.

“Graham Clark is one of Data#3’s founders and over the past 29 years has been intimately involved in the development, direction and management of the company,” said Anderson.