The Data#3 Limited (ASX: DTL) share price is climbing higher on Thursday after the company released its full-year FY21 results.
At the time of writing, shares in the IT solutions company are up 9.02% to $5.32.
Data#3 share price higher on record full year result
Investors are bidding the Data#3 share price higher this morning after the company managed to top its record profit performance of FY20. Key highlights include:
- Revenue up 20.3% to $1.96 billion
- Net profit after tax (NPAT) up 7.5% to $25.4 million
- Basic earnings per share up 7.5% to 16.51 cents per share
- Total FY21 fully franked dividend up 7.9% to 15 cents per share
What happened in FY21 for Data#3?
Data#3 experienced a strong uptick in demand and revenue from cloud services, up 36.2% to $791.6 million. That's largely thanks to major organisations and government departments accelerating their migration to cloud-based infrastructure.
The company flagged that its FY21 results were impacted by increased product delivery delays in the second half, linked to the global computer chip shortage.
As a result, the company built up a "significant backlog of orders" that could not be delivered or invoiced by year end. The backlog of approximately $3 million (pre-tax) will be realised in FY22.
Data#3 said that it expects supply constraints for various products to continue in FY22, but remains confident that it is well placed to secure critical delivers and manage the best possible outcome for its customers.
The encouraging commentary has witnessed strong buying activity for the Data#3 share price this morning. The company's shares opened 2.66% higher to $5.01 and have since lifted to $5.32.
In addition, Data#3 directors declared a final dividend of 9.5 cents per share, lifting its FY21 total fully franked dividend to 15 cents per share. The Data#3 share price will go ex-dividend on 16 September with the pay out on 30 September.
What did management say?
Data#3 CEO and managing director Laurence Baynham was pleased to deliver yet another record result, commenting:
We knew that FY21 would be challenging after a record profit performance in FY20. Our goal is to provide our shareholders with sustainable earnings growth, and we are pleased to announce that we delivered another record result. The result reflects improving services profitability and demonstrates the inherent strength and relevance of our solution offerings in a rapidly evolving market. Our pre-tax profit would have been approximately $3 million higher if it was not for the global supply delays in computer chips. The large backlog underpins a fast start to FY22.
What's next for Data#3?
Despite another record-setting year, the Data#3 share price is down 7.3% year-to-date.
The company remains confident in its outlook, saying that the Australian IT market is predicted to grow at a record rate this year, allowing the company to accelerate the growth of its services.
Encouragingly, the company said that it was already experiencing a steady increase in the pipeline of large integration project opportunities. In addition to the backlog from FY21, the company says it has "provided a fast start to FY22".
