Datacentrix, which has reported moderate growth for its latest financial year, says it is well positioned to take advantage of an increased consolidation in the IT industry.
The group increased turnover to R394.06 million for the year to February 2001 from R248.44 million the previous year.
Operating income of R24.3 million before interest, taxation, depreciation and amortisation (EBITDA) compared with a figure of R19.94 million previously.
Net income after tax dropped to R14.48 million (2000: R17.53 million) and attributable earnings fell to R15.77 million (R17.53 million). However, headline earnings per share rose to 11.3c from 11c previously.
Had the results of the start-up e-business joint venture, Commerce Centre of Southern Africa, been excluded, the picture would have been substantially better.
Datacentrix owns 70% of the venture, with the balance being held by Sterling Commerce and ParaRede.
Datacentrix chairman Gary Morolo says the venture is on track to become profitable by the 2003 financial year.
Had Commerce Centre`s figures been excluded, Datacentrix would have reported EBITDA at R30.62 million, net income after tax at R18.78 million, attributable earnings of R18.78 million and headline earnings of 13.2c a share.
The group`s tangible net asset value was 31c per share at the year-end, compared with a previous 30c per share.
The group was also affected by a write-off of R0.85 million relating to the termination of E-Centrix, a venture capital fund intended to be set up as a joint venture.
"Diligent asset management and financial controls have resulted in a cash balance of R45 million at year-end," says Morolo. "This cash balance takes into account significant investments made during the year."
He adds that Datacentrix has no interest-bearing debt.
Morolo says the group "remains poised to make judicious and opportune acquisitions in the business solutions industry".
An e-business consulting arm will also be established in the next year.
"We are positive that growth will continue in the next financial year. We expect the shakeout and consolidation in the IT industry to accelerate and are extremely well positioned to take advantage of this."
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