Dicker Data chairman and chief executive officer (CEO), David Dicker.
Dicker Data expects to finish fiscal 2014 with $7.5 million in profit before tax, a figure which sits at $14m sans one-time acquisition and integration costs of $6.5m.
The sum includes a three-month contribution from Express Data.
Dicker Data announced its intent to buy Express Data for $65.6 million on February 11, a deal which was completed on April 1, marking the commencement of the distributors’ consolidation.
According to a statement from Dicker Data to the ASX, Express Data has performed as expected in the first quarter since the completion of its acquisition.
Dicker Data chairman and chief, David Dicker, said he forecasts Express Data’s earnings before interest and taxes (EBIT) to amount to $13m for the 12 months to June 30, 2014, adding to Dicker Data’s own guidance of $15.6m.
Moving forward, Dicker said the companies will realise consolidation benefits throughout the first half of fiscal 2015 by way of distribution centre consolidation, administration and finance consolidation, and product cross-selling opportunities.
He predicts Dicker Data will earn a pre-tax profit of $30m in fiscal 2015, which includes a partial period contribution from synergies, and excludes one-off integration costs.
“In FY15, we expect to incur further one-off costs of $2.5m associated with realising these benefits. However, we forecast this will generate recurring costs savings of around $13m per annum, of which we expect to capture a six-month contribution in FY15.”
