Dicker data released results yesterday for their first half, which you can see on the below link as well as listen to managements comments on the call and some better than usual Q & A afterwards.

https://openbriefing.com/OB/Dicker-Data-Limited/2024/8/30/Half-Year-2024-Results-Presentation/5564.aspx

Key takeaway for me was it was a very soft 1st quarter and then a much stronger 2nd quarter, so revenue came in flat for the half and profit came in 5% down vs 1H 2023 (mostly due to some higher costs and change in the margin mix of what was sold).

While that doesn't look great at first glance for a business that has been compounding sales at 15% p.a. for the last 5 years, it is what Vlad and Mary advised was likely to be the case at the AGM in May. So I give them a tick for reasonable guidance and also for them not giving specific ranges of guidance and just a general view. They also said they expected the 2nd half to be much stronger in May and they then reiterated that again yesterday.

Catalysts for stronger growth over the next 12 months are -

• Windows 10 support ending Oct 2025, so many businesses/government will need to upgrade equipment and software

• They are confident AI adoption is going to expand considerably over the next few years, so again many businesses/government will need to upgrade equipment and software

• They are getting nice market share growth in NZ, so can hopefully keep getting closer to the market leader there like they are in Australia

• Hopefully interest rates are at a peak, so financing larger orders will get a little cheaper moving forward

So, if most of that's the case and they can sustain growth for the next 5 years at only half the rate of the past 5 years, I expect to still get a return in the mid teens from the current share price of $9.10 in Aug 24. No change to valuation at this point.

Will be watching the 2nd half results closely to see how genuine the above expectations they are setting are.