Harris Technology has reported a $3 million loss in its first year as a public company, as it continues its consolidation initiatives stemming from a number of acquisitions.
Revenue for the financial year ending 30 June 2017 was down 5.5 percent to $51 million. The results included a non-cash impairment expense of $3.1 million. The company said without the impairment, it would have otherwise made a net profit of $270,000, showing a trend towards profitability.
The company said the results reflect challenging market conditions for the retail industry, which includes increased competition and downward pricing pressure from suppliers.
Harris Technology listed on the ASX through the merger between three companies in July last year: reseller Harris Technology, niche IT distributor Anyware Technologies and online technology retailer Shoply, which was listed on the ASX at the time.
The company sought to divest from businesses inherited through the acquisition that were deemed non-core to the businesses, such as Warcom and eStore, which were part of Shoply and were subsequently closed. Harris merged the remaining core trading websites into a single front-end to focus on becoming a business technology reseller and distributor.
Other post-acquisition initiatives include rationalising warehouse and office locations, developing new IT systems, undertaking full brand and product category reviews and discontinuing old product ranges.
Harris also made its first acquisition in November with audio, video and multimedia accessories distributor Audion, which Harris said had already been integrated into the Anyware business.
Looking ahead, Harris said it would continue to pursue its expansion strategy in FY18 through organic growth and acquisitions.