Data#3 Limited (ASX:DTL) Announces 1H FY25 Results
Financial Performance
Data#3 Limited (ASX:DTL) reported a 7.4% increase in gross sales to $1.4 billion for the half year ended 31 December 2024. Gross profit rose by 10.0% to $143.6 million, and EBIT increased by 4.6% to $26.0 million. Net Profit Before Tax (NPBT) was up 4.1% to $32.0 million, and Net Profit After Tax (NPAT) increased by 4.3% to $22.4 million. Basic earnings per share rose to 14.43 cents, and the interim fully franked dividend was increased by 4.0% to 13.10 cents per share. The company maintains a strong balance sheet with no borrowings.
Dividend
The directors have declared an interim fully franked dividend of 13.10 cents per share, representing a 4.0% increase from the previous period and a payout ratio of 90.8%. The dividend will be paid on 31 March 2025, with a record date of 17 March 2025.
Executive Comments
Managing Director and Chief Executive Officer Brad Colledge said: “Our Services business performed strongly, with gross sales from services up 19.3% on the previous corresponding period, predominately driven by solid growth in our Managed and Maintenance Services business units which benefitted from a number of significant contract renewals and some large contract wins. Software Solutions delivered record gross sales of $975.6 million for the first half, boosted by demand for security products and cloud subscriptions. Both these high growth areas positively contributed to an increase in our recurring revenue from 67% in FY24 to 70% this half. Infrastructure Solutions gross sales declined 12.9% on the prior period, predominately impacted by ongoing delayed decision making by customers.
“Our core business remains resilient as we continue to align with our customers’ priorities, such as security, multi-cloud and connectivity, and evolve our strategy with our world-leading vendor partners.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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