Datacom profit falls 25%
Revenue up but net profit falls as IRD ruling on data centres goes the wrong way.
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Hawke’s Bay
New Zealand IT services company Datacom has reported a dip in full year profit.
The privately-held company is majority owned by its chairman, NBR Rich Lister John Holdsworth.
In a statement, Mr Holdsworth said revenues for the financial year ended March 31 increased by 8.7% from $667million last year to $725 million this year.
Ebitda increased 6.5% from $59.8 million last year to $63.7million.
Net profit fell to $22.3 million compared with $30.2 million last year.
Goodwill impairment costs of $3.3 million and one-off business closure costs of $3.2 million contributed to the profit dip.
The company also faced a $4.5 million additional tax charge as required under accounting rules in response to the recent changes to the tax law around deductibility of depreciation on buildings in New Zealand.
The $4.5 million additional tax charge related mainly to the IRD’s decision not to allow depreciation on Datacom’s datacentres, Mr Holdsworth said.
Revenue from overseas operations was $380 million, slightly ahead of New Zealand’s $345 million. Staff numbers at year end totalled 3,371 (in 2010 in reported a 10% jump to 3383), comprising 1,864 in New Zealand, 938 in Australia and 569 in Asia.
The year included the sudden death of group chief executive Michael Browne (47), who was claimed by a heart attack. Mr Browne was succeeded by Jonathan Ladd in an internal promotion.
Datacom is 54% owned by Evander Management (itself 100% owned by Mr Holdsworth and his partner), and 35% by NZ Post. A mix of directors and managers hold the balance.
NBR staff
Mon, 15 Aug 2011
Mon, 15 Aug 2011
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Datacom profit falls 25%
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