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Strong recovery boosts Datatec results

By , Portals editor
Africa , 13 May 2015

Strong recovery boosts Datatec results

Improved performance by its Westcon Group and Logicalis divisions has contributed towards strong year-end results posted by Johannesburg-and London-listed ICT firm Datatec.

According to the company's results for the year ended 28 February 2015, Group revenue is up 13.3% to $6.4 billion, it secured a gross profit of $932.9 million and EBITDA is up 17.7% to $206.4 million.

Underlying earnings per share is up 17.1% to 41.8 US cents.

In a statement issued the company highlighted strong recovery in Westcon's overall performance, as well as improvement by Logicalis in the second half of FY15 and improved operating margins across all divisions.

Other considerations affecting current trade and prospects mentioned in the statement include continued growth in networking, mobile communications, security and ICT infrastructure managed services, dollar strength expected to hinder growth in some markets and increase relative contribution from US, and a continued focus on improving operational efficiency.

Datatec chief executive Jens Montanana is quoted as saying, "We have maintained our dividend over the past three years despite volatile earnings and have delivered long-term sustainable returns to shareholders,

"We expect our diverse operating portfolio to continue to deliver revenue growth, as Logicalis adapts its capabilities to address cloud-based infrastructure opportunities and Westcon increases its momentum with global vendors."

The company has extended its portfolio with the announcement of two planned acquisitions by its Logicalis division: the UK business intelligence consultancy Trovus in May 2015, and 100% of the issued share capital of Inforsacom Holding GmbH in December 2014.

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