Updated: Dicker Data records $48.9 million in March sales

Updated: Dicker Data records $48.9 million in March sales

Applications from new dealers surge but Dicker warns this isn't a growth market

ASX-listed distributor, Dicker Data (ASX:DDR), has announced a record March for the company with sales topping about $48.9 million.

This has resulted in a profit before tax of about $1.8 million for the distributor.

In a statement to the ASX, the company said the result represented its net operational performance and maybe subject to impacts from the year end audit adjustments.

It doesn’t expect the conditions which contributed to the achievement of this result to be replicated every month, but anticipates a strong performance this financial year.

Compared to March last year, Dicker Data CEO, David Dicker, said it doubled its sales from $25.5 million.

“Our growth numbers year-on-year have been quite good, but we don’t really feel we’re in a growth industry anymore. It’s a case of being steady and doing everything the way it’s suppose to be done without anything too spectacular,” he said.

Dicker said it picked up more business on the Toshiba line this year and it had increased its focus, hiring more staff.

Dicker has more than 70 employees on its books.

“They seem to be doing a really good job,” he said. “We’ve been steadily chipping away on the HP side of things as well and we’re just doing the best we can on day-to-day, month-to-month basis.”

At the moment the distributor services about 3000 resellers, but the figure fluctuates, Dicker said.

“In February, our applications from new dealers was twice as high as what it normally is, which probably reflects the way things were in the market,” he said.

“There will be a certain amount of pull back on that for sure, but you want to take it while you can. We’ll hold on to a bit of that because it just improves our momentum.”

Dicker said it will also be adding more warehouse space because it had already began to run out room in its newly established $15 million premises in Kurnell, Sydney.

“The site that we’ve got is quite large and there’s lots of room at the back. One of the reasons we went there was because we wanted to make sure we didn’t have to move again,” he said.

“The whole building was designed around a much larger warehouse than the one we’ve already got and adding extra space at the back is a relatively minor job.”

It also recently extended its relationship with Newport Capital, which Dicker said had a lot of experience with public companies.

“We’ve dealt with them for a long time and thought it would be a good idea to keep it going to help us with the transition from a private to a public company,” he said.

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Tags Dicker DataAustralian Stock Exchange (ASX)

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