Sharechat Logo

Datacom net profit falls

NZPA

Monday 15th August 2011

Text too small?

IT services provider Datacom Group reported a 26 percent fall in net profit, with the result affected by a deferred tax adjustment, and goodwill impairment and business closure costs.

Datacom, in which NZ Post has a 35 percent shareholding, said revenue for the year to March 31 rose by 8.7 percent to $725 million, while trading profit before tax and impairment charges rose 7.8 percent to $45.4 million.

Net profit before tax was $38.9m, taking into account goodwill impairment costs of $3.3m and one-off business closure costs of $3.2m. Most of those costs related to the closure of the company's Sydney-based software development business, Datacom chairman John Holdsworth said.

The fall in net profit was due to the lower pre-tax figure and an increase in the current tax charge of $4.5m as required under accounting rules in response to recent changes to tax law about deductibility of depreciation on buildings in this country.

Most of the $4.5m additional charge related to Inland Revenue's decision not to allow depreciation on Datacom's datacentres, Holdsworth said.

Revenue from overseas operations was $380m, slightly ahead of the $345m in this country. The 3371 staff numbers at year end included 1864 in New Zealand, 938 in Australia, and 569 in Asia.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report