Dicker Data embarks on $50 million capital raise amid rising earnings

David Dicker (Dicker Data)

Credit: Dicker Data

ASX-listed retailer Dicker Data saw revenue jump 36.5% to $1.45 billion for its 2022 half as it seeks to raise $50 million to expand its Kurnell warehouse and increase capacity. balance sheet flexibility.

During the first half of 2022, Dicker Data’s pre-tax earnings (EBITDA) increased 19.5% to $61.2 million and net income also increased 7% to $34.3 million .

The increase in revenue was partly attributed to Dicker’s acquisition of New Zealand’s Exeed, which added $192 million in revenue in the first half.

“We continue to exceed expectations, despite the headwinds caused by supply chain and logistics disruptions,” said Chairman and CEO David Dicker.

“It is pleasing to see our recent acquisitions resulting in positive results for our shareholders and I am confident that the benefits for our shareholders will continue to grow as we deepen our operations and as these new divisions take advantage of the scale of the business at large.”

First-half results also include two months of contribution from Dicker’s data access and surveillance (DAS) business following the acquisition of Hills’ security and IT business, representing revenue of $18 millions of dollars.

Excluding the contribution of Exeed and DAS, underlying organic revenue increased by 16.8%. Following the two acquisitions, Dicker Data’s workforce grew from 540 to 824.

Virtual hardware and services sales closed at $1.08 billion, up 35% for the six-month period. Meanwhile, software sales amounted to $365.5 million, up 41% and accounting for a quarter of total revenue.

Within its software business, $344 million was generated through recurring subscription and recurring revenue streams, a model that grew 47% over the same period last year.

Services revenue was $6.5 million, up 34% due to the conversion of several previously deferred enterprise projects.

Dicker Data told shareholders that demand continued to outstrip supply as it continued to process more orders than before the pandemic, with the current value of its open orders standing at $393 million.

“Demand remains strong across the company’s product portfolio and local economies’ appetite for technology products shows no signs of slowing down,” the retailer told shareholders.

“Advanced solutions, such as infrastructure, networking, security and software have returned to high levels of growth as business confidence also rises.

“Demand for end-user computing and devices has normalized, but the company’s Professional AV division continues to grow beyond expectations.”

Dicker expects inventory and logistics challenges to continue into next year, and assured that he has a wealth of knowledge in managing these challenges and working proactively with customers.

Nearly $150 million in revenue came from the retail segment at H122, which Dicker said presented a significant opportunity to expand its operations and seek to distribute the retail product lines of many of its suppliers. of existing technology.

The new excavations are expected to add over 70% additional storage capacity.

Approximately $20 million will also be allocated to working capital to increase the flexibility of its balance sheet.

“Our business continues to grow rapidly, both through our recent acquisitions, but also organically,” Dicker said.

“With each passing year, an increasing number of channel partners choose us as their channel partner and as a result we hold more inventory and provide more trade credit than at any other time in the company’s history. company.”

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