Dynamic Supplies rakes in $206.4m revenue

Brisbane-headquartered Dynamic Supplies raked in $11 million in profit from $206.4 million of revenue for the 2014 fiscal year.

The numbers for the year ending 30 June 2014, which were only reported to ASIC in April, show the national distributor still managing an impressive margin of 5.3 percent net profit in proportion to revenue, despite net profit dipping from the previous year's $13.7 million,

Dynamic's 2014 sales revenue of $206.4 million was also slightly down on the previous year's mark of $233.3 million.

Dynamics Supplies' state of affairs for the current financial year is unpredictable in light of a long-running dispute against a rival distie coming to a head.

Dynamic won an intellectual property court case against Tonnex in September. The Federal Court ordered Tonnex to pay $150,000 in damages to Dynamic Supplies – but the losing distie filed for liquidation just two days later.

CRN reported that, in total, Dynamic Supplies was left $750,000 out of pocket by Tonnex. As of last month, none of the unsecured creditors had been paid and the impact of Tonnex's liquidation on Dynamic Supplies' 2015 bottom line is unknown.

CRN contacted managing director Scott McLennan but he could not be reached in time for publication.

Dynamic Supplies distributes both hardware and consumables, and lists HP, Canon, Epson, Lexmark, Kyocera, Brother, Samsung, Panasonic, Sharp, Lanier, Fuji-Xerox, Toshiba and Ricoh among its vendors. Dynamic Supplies made headlines in September for securing the distie rights for Oki Data Australia.

The private company is run out of Brisbane with branches in all the mainland capitals. The distie boasts over 13,000 square metres of warehouse space, employing more than 140 staff.

Dynamic Supplies' healthy 2014  profit margin comes in an industry notorious for distributors running on very thin margins.

According to the latest publicly available figures, the major disties – such as Avnet, Synnex, Dicker and Ingram Micro – run on less than one percent profit-to-revenue. Smaller distributors such as WhiteGold, now part of French multinational Exclusive Networks, have a higher margin.

Net profit as percentage of revenue (2013-14)

* - year to end of Dec 2013