JSE-listed Datatec, which turns 21 this year, is for the first time expecting to declare a dividend at the end of the current financial year.
This comes after the group announced this morning that it grew headline earnings a share from 0.1 US cents to 12 US cents in the six months to August.
The calculation of the dividend is to be decided before the fiscal year-end, but CEO Jens Montanana said at the presentation of the group`s results in Sandton this morning that it would be in proportion to a factor of profit.
Revenue of $1.44 billion for the period was up 15.2% from the $1.25 billion of the previous year, while a $30.11 million operating profit compares with a previous profit of $2.57 million.
"The cyclical recovery we predicted last year is starting to play out," commented Montanana.
Although the group is continuing to experience challenges in Europe, all other areas are performing robustly. "We are beginning to fire on all cylinders across the group," said Montanana.
Empowerment deal
The group`s pre-tax profit of $26.52 million compares with a previous figure of $55.5 million, but last year`s figure included the effect of a $55.15 million profit on the disposal and closure of discontinued operations.
An attributable profit of $13.58 million compares with a previous profit of $55.18 million.
Net cash was down to $112 million from $140 million at the end of the last financial year, mainly due to acquisitions. Cash generated from operations improved to $13.98 million, compared with a previous utilisation of $22.51 million by operations.
Subsidiary Westcon improved significantly during the period, despite continued challenges in Europe, which are being addressed through the appointment of former Nortel executive Barry Shakespeare as GM for the region.
Westcon, says Montanana, now accounts for 20% of Cisco`s worldwide distribution business. The subsidiary grew revenue 8% to $1.1 billion, that growth outstripping that of its major vendors - Cisco Nortel, Avaya, Nokia and Checkpoint. Pre-tax income of $23 million compares with a year-earlier figure of $2 million.
Logicalis performed strongly, with a 78% increase in revenue to $247.3 million, with organic growth amounting to 27%. Operating profit rose to $5.18 million from $733 000 a year earlier.
Analysys Mason Group achieved a 57% increase in revenue to $30.07 million with pre-tax profit rising 114% to $2.69 million.
The group, which is expecting continued growth, should announce a black economic empowerment deal before the end of the calendar year, Montanana said.
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