While the economies in both New Zealand and Australia have been slow in recovering from the impact of the global financial crisis, for the year to 31st March 2010 Datacom Group has posted very solid growth figures for both revenue and profit.
Revenue increased by 9.5% from $609m last year to $667m this year while net profit after tax increased by 13.8% from $26.6m to $30.2m.
Another encouraging feature of the year was that both New Zealand and Australia/Asia contributed to this revenue and profit growth.
New Zealand’s revenue was $295m, an increase of 7.3% on last year and Australia/Asia was $372m, an increase of 11.4%.
Net profit before tax at $42m showed a positive increase of 8.8% with New Zealand up 2% and Australia/Asia up 23%.
New Zealand completed a solid year with notable growth in the software development and application management business. The recent investments in our next generation datacentre facilities, including an acquisition in Perth, and modern payroll platform proved successful with the datacentres making positive returns, and nearly 1000 companies running on the new payroll platform.
The Australian/Asian operation continued its recent momentum but with a greater focus on delivery to customers and improved margin growth on the revenue base. As a result, revenue growth of 11.4% this year was more moderate than the previous two years.
At March 2010 the Group was showing a 10 year compound growth rate of 15% for revenue and 16% for profit.
Staff numbers at year end totalled 3,383, up 10% on last year. NZ employed an additional 160 staff and Australia/Asia were up by 148.
In summary, the highlights of the year’s performance were:
- Total operating revenue was $667 million, up 9.5%
- Profit before tax was $42 million, up 8.8%
- After tax profit was $30.2 million, up 13.8%
- Staff numbers 3,383, up 10%
This company-wide growth has been recognised in recent awards won by the company with Datacom being named the 2010 Hi-Tech NZ “Company of the Year” and also awarded the 2010 Australian BRW’s “Best IT Services Firm Client Choice” Award and The NZ Deloitte / Management magazine Top 200 “Best Growth Strategy” Award.