Mobile distie Cellnet boosts revenue and profit after Wentronic acquisition

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Mobile distie Cellnet boosts revenue and profit after Wentronic acquisition

Mobile distributor Cellnet has boosted revenue by 10 percent in its first year since being acquired by Wentronic.

The company reported revenue of $82.6 million for the financial year ending 30 June 2017, up from $75 million the previous year. Profit was up 16.42 percent from $1.7 million to $2 million despite "difficult retail conditions" in Australia.

Cellnet said underlying profit was $3 million, but was impaired from costs related to the acquisition early this year. German-headquartered electronics accessories distributor Wentronic announced plans to acquire 83 percent of Cellnet in November last year for up to $12 million.

The acquisition was finalised in January, which saw co-founder Mel Brookman resign, along with chairman Alexander Beard and non-executive director Elliot Kaplan.

The new board of directors consists of chief executive Alan Sparks, director Michael Reddie and three directors from Wentronics: Michael Wendt, Brian Danos and Kevin Gilmore.

Cellnet took a hit to its bottom line when one of its largest partners, Dick Smith, collapsed in 2016, with profit falling to $1.63 million that year.

 The distributor's current partners include some of the largest mobile retailers in the country such as Telstra, Optus, Vodafone, JB Hi-Fi and Harvey Norman. The company sells accessories from brands like Plantronics, Square, Bose and Cellnet's own brand 3SIXT.

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