Redundancies have cost Dicker Data a further $1.1 million in the first quarter of its 2015 financial year, as it continues to pull back costs in the wake of last year’s acquisition of Express Data.
While the bulk of the restructuring costs have been incurred, chief executive David Dicker said the company may incur some further restructuring costs in the subsequent quarter as it works to adjust its cost structure to “optimal levels”, though it expects these costs should not be material.
The $1.1 million in further redundancy costs for the first quarter follow $4 million in restructuring costs in the six month period to 31 December 2014, the majority due to redundancies.
When chief executive David Dicker spoke to CRN earlier this year, he said that the company was working towards a target of at least $4 million sales per employee. The company had typically achieved revenue of more than $4 million per head in the last decade.
The distributor reported earlier this year that it had 350 staff, meaning it had downsized by more than 100 people since buying Express Data in February 2014.
Meanwhile revenue continues to climb. Wth revenue from Express Data now contributing to the overall total, the combined company reported a big jump in revenue to $240.3 million for the quarter, $123.5 million more than it achieved in the same period the year before.
Underlying pre-tax profit was also up from $2.7 million to $6.2 million, though this was after taking into account forgone margin and profit the year before as part of a vendor reorganisation and restructures to ensure the acquisition was completed. The company estimates this cost it approximately $2.6 million in earnings before interest, tax, depreciation and amortisation in the first quarter last year.
David Dicker stated he was confident the company is on track to reach $1 billion in revenue for the full year.
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