Datacom's latest financial results show the company's revenue grew by 8.7 percent in the year ended on 31 March but the group's trading profit was impacted by goodwill impairment costs of $3.3 million and the closure of the company's Sydney-based software development business.
Datacom reported $725 million in revenue this year, up from $667 last year. Trading profit before tax and impairment charges increased by 7.8 percent from $42.1 million to $45.4 million. However, the net profit before tax was $38.9 million, down from last year's $42.1 million.
Net profit after tax went down to $22.3 million, from last year's $30.2 million. The company attributes these numbers to the lower pre-tax profit figure and an increase in the current tax chargeof $4.5 million 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.
In total, the company gathered $380 million in revenue from overseas operations, ahead of $345 million from its New Zealand business.
Datacom employs 3,371 staff, of which 1,864 are based in New Zealand, 938 in Australia and 569 in Asia.