AAP Finance

Dicker Data benefiting from WFH trend

By AAP Newswire

Information technology wholesaler Dicker Data is benefiting from strong demand for computer hardware as more staffers work from home, as well as more complex supply chains, its chief financial officer says.

The company on Thursday announced that its half-year net profit after tax had risen 23.5 per cent to $29.4 million, with revenue up 18.1 per cent to $1 billion.

"The demand from working from home is pushing up volumes across the board," CFO and executive director Mary Stojcevski told AAP.

Dicker describes itself as the leading value-added distributor of hardware, software and cloud technology in Australia.

It sells to reseller partners such as Optus, Data#3 and Telstra, as well as smaller companies serving verticals such as health care and education.

The company serves on average 25,000 orders per month, delivering an average of 350,000 units of PC hardware from its warehouse in Kurnell, south of Sydney.

"We're effectively a logistics company as well," Ms Stojcevski said.

Dicker has a new $55 million warehouse under construction, also in Kurnell, that will increase its warehouse space by almost 80 per cent, to 23,500 square metres, when finished late this year.

While Dicker's partners could order equipment directly from original equipment manufacturers such as Cisco, Lenovo and Microsoft, information technology has become so complex that there's no single vendor that can supply all the needed software and hardware, Ms Stojcevski said.

"The role of a distributor is to aggregate all the equipment and to aggregate all the billing as well," she said.

"The relevance of the distributor has increased over time."

Dicker executives are hoping the company may be added to the ASX300 at its next rebalancing, following a $50 million institutional placement in May that increased the proportion of Dicker's free-floating shares to above 30 per cent.

At 1315 AEST, Dicker Data shares were down 1.5 per cent to $7.36, and are up around 7.0 per cent for the year.