Data#3 expects another record result
Data#3 shares slipped on Monday despite announcing that it expects to report another record full-year result. The business technology solutions provider said it should achieve a solid full-year profit growth despite industry-wide product delivery delays.
Its expected unaudited net profit before tax for FY21 is approximately $36.8 million, an increase of 8% on the prior year (FY20 $34.1 million).
The result was impacted by increased product delivery delays in the second half, related to the global computer chip shortage being experienced across the industry. These supply constraints have coincided with the spike in demand for devices traditionally experienced during the fourth quarter, resulting in a larger than usual product backorder at year-end.
The profit associated with this backorder is approximately $3 million, which will be realised in FY22. Supply constraints for various product sets are expected to continue in FY22.
Data#3 will announce its audited full-year results on 19 August 2021, and it also noted the board’s intention to maintain its historic dividend payout ratio.
The company’s share price hit a 52-week high of $7.30 last October before plummeting on its Annual General Meeting release. Since then, shares have been range-bound and currently sit in the middle of their 52-week range.