One of the biggest movers in morning trade has been technology consulting services company Data#3 Limited (ASX: DTL).
Its shares surged higher by as much as 8.5% in early trade following the release of its provisional half-year net profit before tax result.
According to the release management expects half-year net profit before tax (NPBT) to be $8 million, up 31% on FY 2016's half-year NPBT of $6.1 million.
At its AGM in November the company projected NPBT in the region of $7 million and $8.5 million. Pleasingly today's announcement puts its provisional result at the upper end of its range.
Today's gain means Data#3's share price has now risen a massive 55% in the last 12 months. I can't say I'm surprised by the rise either with the level of growth the company has been exhibiting.
In FY 2016 the company delivered full year net profit after tax of $13.8 million, up 30.4% year on year. To carry this momentum through into FY 2017 is very impressive and I believe it is a testament to the great work management has done.
At around 18x trailing earnings Data#3 looks to be great value even after its rapid rise and especially compared to peers Melbourne IT Limited (ASX: MLB) and SMS Management & Technology Limited (ASX: SMX).
Whilst my pick of the industry would still be RXP Services Ltd (ASX: RXP), Data#3 wouldn't be far behind after this market update.
