Dicker Data posted some very strong growth results for the first quarter of 2019 (it reports on a calendar year basis).

For the 3 months to the end of March, 219:

• Revenue rose 21.1%
• Profit before tax rose 46.7%

The result was ahead of company expectations, with the bottom line benefitting from some solid operating leverage. Modest cost growth saw net margins improve from 2.7% to 3.5%. Nevertheless, management were quick to point out that it was investing further into headcount and working capital, so don't expect margins to maintain at this level.

Dicker reiterated it's full year guidance for pre-tax profit of $51.4m. Assuming the usual 30% tax rate, that puts shares on a PE of ~21.

With average compound growth of 11% over the past 3 years, that probably feels about right in this 'high-multiple' market. But I am mindful that thin margins can swing profits around a lot with only small changes.

Announcement is here