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Vita Feeds Off Telstra: Profits Up 66%

Vita Feeds Off Telstra: Profits Up 66%ASX-listed provider of electronics and IT, Vita Group saw earnings EBITDA jump 52% to $33.5m in the 12 months to 30 June 2014.

The Queensland-based company also increased revenue to $450.1m – up 4% in Fy 14, it announced today. 
The growth was underpinned by heightened performance of Vita-owned Telstra stores and Business Centres as it expands its Telstra store network to 109. 12 Telstra points of presence acquired in the year. 
Earnings from the B2B telecommunications channel was up 29%. Increased productivity was also attributed to the rise. 

However, Apple reseller Next Byte recorded a 17% decline in revenue to $75.2m, attributed to the closure of 
a number of older stores, softer performance and the lack of new Apple product launches during the period.
Vita’s underlying net profit (NPAT) soared 66% to $10.3m, however, the $19.4m non-cash impairment of Next Byte, announced in February, saw Vita record a net loss of $4.6m for the year.
The tech group also acquired Camelon ICT Solutions in Fy14 and says the integrated, business channel is poised for growth. 
Vita Group CEO, Maxine Horne, said the FY14 result follows the decision to invest in building the country’s largest network of Telstra stores and business centres. 
“Our new and existing Telstra outlets are performing to expectations and continue to generate significant levels of earnings and cash flow, while our move into the B2B channel is gaining traction,” she said. 
“The FY14 result is testament to the quality of our strategic partnerships and the hard work and dedication of the Vita team. The benefit of our investment in people and in developing our leaders is clearly evident.” 
The Board declared a final dividend of 2.73 cents per share, taking the full year dividend to 4.64 cents per share, an increase of 64% on Fy13. 
Vita shares soared 15.38% to $0.90, today.