Dimension Data reports revenue of $4.0 billion which is up up by just under half a percent in the year ending September 2009.
Services revenue growth of 13.0% was achieved while the company says excellent performance from managed services produced results that are up by 21.2%.
Operating profit is up 25.4% to $194.4 million while the operating margin expanded to 4.9% from last years’ 4%.
The Company reports a cash balance of $600 million, strong cash generation during the year.
The Group reports what it calls “robust performance over the past financial year” which has resulted in improved returns and strong growth in profitability.
Strong growth of 13.0% in services revenues drove an improvement in the gross margin and this, when combined with tight cost management, resulted in operating profit growth of 25.4%.
The Group operating margin grew to 4.9%, and working capital management and strong cash generation resulted in a closing cash balance of $600 million.
In a Sens statement, Dimension Data reports the key elements of their strategy has been to grow revenues ahead of the market, to maintain gross margins and to reduce overheads as a percentage of revenues, thereby driving an improvement in the operating margin and profitability.
The company has grown revenues ahead of the market, achieving a compound annual growth rate of 12.3%, and the gross margin has moved up to 22.5% from 21.0%.
Costs as a percentage of revenues have reduced to 17.6% from 1.9% and operating profit has more than tripled to $194.4 million from $56.7 million four years’ ago.
A key feature of the 2009 results is the excellent growth in services revenues - particularly driven primarily 19.3% growth in managed services in the Systems Integration business and by revenue growth of 27.9% in Internet Solutions.
Growth in services revenues offset a decline of 7.5% in total product revenues.
Dimension Data report that at the first signs of the global slowdown affecting business in late 2008, the company moved quickly to counteract the impact of a slower demand environment by managing and cutting costs in specific areas where action was warranted, most notably in the US and Asia.