The Dicker Data (ASX: DDR) share price is up around 5% after the technology hardware, software and cloud distributor announced its final unaudited HY20 numbers at its annual general meeting (AGM).
HY20 update
Dicker Data said that total revenue (from ordinary activities) rose 18.1% to just over $1 billion. Recurring software revenue grew 53.1% to $225 million for the FY20 half year.
Net profit before tax went up 30.4% to $42 million and net profit after tax grew 23.5% to $29.4 million.
The company said due to recent surge in remote work, Dicker Data has seen a surge in demand for remote and virtual working solutions for both hardware and software. Management said this showed IT’s essential role in enabling business continuity.
New vendors added during FY19 and FY20 accounted for incremental revenue of $28.3 million in HY20. Existing vendors (added in FY18 and prior) grew revenue by 15.1% as existing vendor relationships were leveraged to gain access to new product lines or increased market share.
Summary
I’ve been very impressed by Dicker Data over the past few years. It continues to positively surprise me with its growth. I’m not sure what the right price is for Dicker Data, but it pays a solid dividend, so it could work for both growth and income investors. Here are some other growth share ideas.
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