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Datatec reports positive results

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 14 May 2008

ICT powerhouse Datatec has reported positive results for the financial year ended 29 February, with revenue breaching the $4 billion mark.

This morning, the JSE-listed company reported its operating profit for this financial period was up 25%, while revenue had increased by 27%.

However, the company's gross margin was only marginally up, to 13.7% from 13.1% during the previous financial year.

Underlying earnings per share - which excludes goodwill impairment, amortisation of intangible fixed assets, profit or loss on sales of assets and business and unrealised foreign exchange movements in inter-company loans - grew by 21%.

Jens Montanana, CEO of Datatec, said the company's scale and geographic diversity was of continued benefit in achieving strong growth.

He said despite a slowdown in the US, "tight operating cost controls and improving productivity underpinned our solid progress".

The group extended its non-US operations during the relevant financial year, and it now accounts for 58% of total revenue.

The Westcon division accounted for 71% of the group's revenue, with Logicalis accounting for 21%.

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