Cellnet posts $5.2M profit

ASX-listed IT distributor Cellnet Group Limited has reported an after-tax profit of $5.2 million on revenue of $318.7 million for its financial year ending 30 June, 2003.

ASX-listed IT distributor Cellnet Group Limited on Monday reported an after-tax profit of $5.2 million on revenue of $318.7 million for its financial year ending 30 June, 2003.

The company has also delivered a fully-franked final dividend for shareholders of four cents per share, taking the full year dividend to seven cents.

Cellnet chairman Daryl McDonough, said the company posted improved results in the second six-month period, recording a 36 percent increase in after-tax profit to $3 million, due to 'reforms to the company's board, management structure, and strategies provided a fresh platform for future growth'.

'Following a sluggish first half dominated by tough market conditions in the mobile handset market, the group rebounded strongly to post total group revenues of $318.7 million,' he said.

The company said a write-off for obsolete stock adversely affected its after-tax profit. Without the write-off, it would have reported an underlying after-tax profit of $6.6 million, which 'was reasonable given the prevailing market conditions'.

Company managing director Stephen Harrison, said logistics revenue was boosted by securing a Hutchison 3G contract for the distribution of 3G handsets in Australia. Its accessories arm also performed strongly with handset models released by Sony, Ericsson, Siemens and Motorola showing positive sales, the company claimed in a statement.

Harrison added that Cellnet's recent acquisition of Cassa had allowed it to expand into new markets. Last month, Cellnet lost a mobile accessories distribution arrangement with Nokia, which was worth around $20 million per annum.