• Gross sales up 9.2% to $1.5 billion
• Profit before tax up 4.5% to $33.5 million
• Interim dividend increased 3.1% to 13.50 cents per share

Data#3 Limited delivered a strong first half performance, with gross sales increasing by 9.2% to $1.5 billion and profit before tax rising 4.5% to $33.5 million. The company's Infrastructure Solutions and Software Solutions businesses were the key drivers of growth, with the Services segment experiencing a more mixed performance. The Software Solutions business saw statutory revenue decline 4.7% due to changes in the Microsoft incentive program, but the company has implemented mitigation strategies to address this. Data#3 was also recognized with multiple industry awards during the period, demonstrating its expertise in providing leading technology solutions to customers. The company's recurring revenue remained steady at 70%, reflecting the ongoing shift to subscription and as-a-service models. Looking ahead, Data#3 sees continued opportunities in areas such as network infrastructure, data centre solutions, and AI, while also navigating supply chain challenges. Overall, the company remains well-positioned to capitalize on market opportunities and deliver sustainable earnings growth.

Data#3 expects its full-year FY26 performance to be consistent with its long-term strategy, with the Software business returning to gross profit growth in the second half and the Services business aligning its capabilities to changing market demand.

The outlook for Data#3 remains positive, with the company well-positioned to continue capitalizing on market opportunities in areas such as AI, network infrastructure, and data centre solutions. While facing some near-term supply chain challenges, the company is confident in its ability to deliver sustainable earnings growth.