HP South Pacific backflips on last year's loss for 2020 fiscal year

HP South Pacific has reported a net profit of just over AU$13 million.
Written by Aimee Chanthadavong, Contributor
The new Hewlett Packard Enterprise (HPE) corporate headquarters, San Jose, Silicon Valley
Andrei Stanescu / Getty Images

Hewlett-Packard South Pacific, HPE's Australia and New Zealand outpost, has turned things around by reporting net profit of just over AU$13 million for the 2020 financial year, a vast improvement on the restated net loss of AU$2.79 million from the year prior.

The saviour for the company during the financial period to 31 October 2020 is HP South Pacific, which recorded just over AU$18 million that was gained thanks to lower liabilities from discontinued operations. This was specifically in relation to HP South Pacific executing share transfer form with HP The Hague B.V. to dispose of 100% equity interest in HP New Zealand for $1.

For the 2020 fiscal year, the company made just under AU$661 million in revenue, lower than the AU$766 million restated revenue for 2019. Broken down, HP saw sales of goods decline from a restated value of AU$477 million to AU$403 million for the year, while services climbed slightly from AU$263 million to AU$256 million.

The company employed 763 people at the end of fiscal year, 141 fewer than what was recorded during 2019. Despite the drop in headcount, employee benefits increased by around AU$11 million to AU$172 million, while cost of sales year on year slid from a restated value of AU$565 million to just under AU$460 million for the fiscal year.

For income tax, HP South Pacific had a AU$5.86 million expense, versus the AU$9.2 million expense from 2019.

In 2020, the company made AU$4.6 million income tax adjustment for prior years, while 2019 fiscal year had a AU$6.4 million adjustment. There was also AU$1.3 million in current income tax charges, more than half than the restated value of AU$2.9 million. 

During the fiscal year, its subsidiary HP Australia and New Zealand was deregistered.

Minus its discontinued operations, HP South Pacific recorded a net loss of AU$5.2 million, which was smaller than the AU$6.2 million those parts of the company recorded last year.

HP South Pacific's acquisition of Cray Australia and New Zealand took effect on 1 January 2020, after the HP mothership had agreed to purchase Cray for around AU$1.3 billion in May 2019.

The company also noted it acquired Silver Peak Systems Australia for AU$1.5 million on 1 February 2021.

Commenting on the pandemic, the company stated that it continues to have an impact on the company but admitted the "long-term magnitude and duration of the disruption and resulting decline in business activity is still highly uncertain and cannot currently be predicted".

"Our operations have been affected by a range of external factors related to the COVID-19 pandemic that are not within our control, including the various restrictions imposed by cities, counties, states and countries on our employees, customers, partners and suppliers designed to limit the spread of COVID-19," the company said. 

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