Dimension Data shows profit

Dimension Data Holdings has announced that the group’s total turnover had increased by 8% - from £567,000 in the last half of the...

Dimension Data Holdings has announced that the group’s total turnover had increased by 8% - from £567,000 in the last half of the previous financial year to £623,000 for the six months ending 31 March.

The manufacturer of IT infrastructures reported as a financial highlight a total operating profit of £5.6m, against the £2.5m loss reported for the second half results of 2003 - before goodwill amortisation and exceptional items.

It also reported a total profit of £906,000 compared with a loss of £16.3m in the second half of 2003.

Chief financial officer Dave Sherriffs said that the group improved the gross margin by half a percentage point to 21% in relation to the previous six months’ results. Chief executive officer Brett Dawson added that this meant that the group was settling well into a stabilisation phase.

Cash at the bank and in hand, which includes short-term investments, amounts to £198m, compared with the previous year's figure of  £219m.

“We have made significant progress in a number of areas over the past six months. Our under-performing regions, the US, Germany and South Africa, have returned to profitability, and non-performing assets have been sold or realigned," said Dawson.

"We have improved our external focus, and the benefits of investments made in management, processes, skills and solutions capabilities have started to bear fruit, with our cost base under control and productivity per employee increasing,” he said.

Written by Computing SA staff

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