D4T4's profits soar following North American investment
D4T4 Solutions on Tuesday reported that its annual profits almost doubled after strong growth from the company's own IP revenues and third party product sales after investment in North America.
The data products company achieved profit before tax of £6.3m for the year ended 31 March, an increase of 91% compared to the year before, while total revenue climbed by 37% to £25.2m as the business said continued investment had resulted in "notable sales success" in North America.
D4T4 said this investment had resulted in the winning of several significant contracts with both new and existing clients, while demand for hybrid cloud data platform services had jumped.
The company's own IP product revenues rose by 35% to £9.20m after an increase in sales of both the Celebrus customer data platform and the hybrid cloud data platform, while third party product revenues increased by 88% to £7.4m.
Meanwhile, delivery services and recurring sales gained as well, growing by 7% to £3.1m and by 16% to £5.6m, respectively.
Peter Kear, chief executive of D4t4, said it was important that the AIM traded company had maintained its gross profit margins amid the revenue growth.
Consequently, the company recommended a final dividend of 2.3p, up 23% compared to the year before.
"We continue to innovate our product, grow geographically and deepen our relationships with our strategic partners. The business enters the new financial year in robust shape after closing a number of significant contracts in the second half of the year benefitting 2018-19 and subsequent years. The board is greatly encouraged by the opportunities and outlook for the business," said Kear.
D4T4 Solutions' shares were up 4.98% at 262.96p at 1109 BST.