Datacom cites FY2022 profit drop to annual leave policy

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Datacom cites FY2022 profit drop to annual leave policy

Datacom posted a decline in profitability in the 2022 financial year due to its decision to allow employees to hold onto and carry over annual leave during COVID travel restrictions.

Net profit after tax was NZ $28 million (A$25.2 million) for the period, down from $NZ 35 million in FY2021. Full-year operating cash flow was at NZ$114 million (A$102 million).

The NZ-headquartered integrator’s revenue however grew to NZ$1.45 billion (A$1.30 billion) for the year ended 31 March 2022, up from NZ$1.34 billion the previous year, citing strong demand for its cloud, data analytics, cybersecurity and SaaS products,

Datacom said its revenue growth reflected the company’s increased focus on supporting customers to evolve their technology stack to invest in solutions that support their long-term business goals – particularly cloud, data analytics, cybersecurity and its SaaS products.

Commenting on the revenue, Datacom chief executive officer Greg Davidson said, “The mindset amongst customers as they continue to adapt to the new normal is increasingly switching to innovation, growth and how they can utilise smart technology to deliver better outcomes and experiences, and this is incredibly encouraging to see.

“As a group, we are thankful to our shareholders for taking a long-term view, both regarding the investment in our SaaS products Datascape and Datapay, and in our data centres to ensure continuous improvement in line with our customers’ needs.”

The decrease in net profit after tax reflected the IT services company’s decision to allow employees to hold onto and carry over annual leave in response to the need to put employee’s wellbeing first while borders largely remained closed and limited their ability to travel.

“We’re also grateful to them [shareholders] for supporting our decision to allow employees to accrue leave. While this has impacted our profit, it has enabled us to live up to our value of putting the wellbeing of our people first,” Davidson said.

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