Westcon NZ posts $19.1 million YOY revenue increase - report
Westcon NZ has released its latest financial report, showing the company has increased its revenue by $19,119,905 in the last financial year.
The latest report covers the year ended February 28, 2022.
The company's revenue for the same period in 2021 was $134,358,064, compared to $153,477,969 in 2022.
This is broken down into the sale of its goods ($149.1 million compared to $130 million in 2021), the sale of its services ($404,000, a slight year-over-year dip from $467,000 in 2021) and the commission it received from the sale of its maintenance service (a slight increase year-over-year to $3,888,380 in 2022, compared to $3,806,335 in 2021).
The company's overall profit for the financial year decreased by almost $226,000, from $2.6 million in 2021 to $2.4 million in 2022.
This is in part due to Westcon NZ's expenses this year, which include $2.2 million in management costs, an increase of $355,000 compared to 2021 ($1.9 million).
In addition, the company spent almost $17,000 paying off software debt, compared to nearly $20,000 in 2021.
However, also included in this category are expenses associated with rent and leasing, which significantly reduced in 2022 to $9,000, down from $20,000 in 2021.
Westcon NZ's profit from its operations is $3.4 million, a decrease of $314,000 year-over-year from $3.7 million in 2021.
Further, the total tax expense of its operations is $962,000 compared to $1.05 million in 2021.
PricewaterhouseCoopers conducted an independent audit of the company to compile this report.
The latest revenue figure improves on Westcon NZ's previous report, which saw the company post a $17.6 million drop in revenue compared to the previous year's takings.
Despite the drop in revenue, the company's profits only dipped by $117,000 between 2020 and 2021, owing mainly to less money spent on purchases, employee benefits expenses, depreciation expenses, interest income, and gains that made up for the previous year's losses.
The company spent $120 million on purchases, down from $134 million in 2020. Similarly, the company spent $10 million on employee benefits expense, down from $12.4 million in 2020. ‘Other' expenses dropped to $2.3 million, down from $3.4 million.
The company also earned more from change in value of finished goods ($3.8 million, up from $1.6 million) and made an $858,000 gain, up from a $1.8 million loss in 2020.
Both the 2021 and 2022 financial reports note the instability that COVID-19 has caused.
“The management and directors of the company continuously monitored the impact of COVID-19 on the supply chain and financial performance of the business during lock downs.
“The management and directors of the company acknowledge the future impact of COVID-19 on the business, supply chain and wider economy contains a level of uncertainty, however no impact on the going concern status of the company has been identified.
“The management and directors expect that the cash and cash equivalents are satisfactory for the company to meet its liabilities for a period of no less than 12 months from the date that these financial statements have been issued.
“The management and directors of the company will continue to assess the impact of COVID-19 on the business and respond accordingly.
Some figures in this story have been rounded.