Dual-listed Datatec aims to boost revenue to at least $5.5 billion in the new financial year, while seeking to grow core underlying earnings to $0.55.
The company this morning issued its results for the year to February and met its guidance of $5 billion in revenue, a 17% year-on-year gain. The turnover was mainly boosted through organic growth.
Earnings before interest, tax, depreciation and amortisation gained 34%, to $190.2 million, as the company benefited from operational leverage. CFO Ivan Dittrich, who is leaving Datatec in July to join Vodacom, says the results hit record levels.
Datatec's gains were underpinned by its diverse portfolio, especially in emerging markets, says Dittrich. A third of the revenue was from its operations outside the US and Europe, while 40% of its profit came from developing markets, he adds.
CEO Jens Montanana says Datatec's global reach and diversity continues to serve it well, helping to insulate the group against the challenging trading conditions in North America and Europe. “South America and Asia Pacific remain our best performing markets, with Brazil, once again, doing exceptionally well.”
Higher margins
Dittrich says Datatec's business mix has also improved. The company's Westcon unit gained traction in security products, which improved margins. Logicalis has also benefited from higher annuity revenue, while the consulting arm - Analysys Mason, Intact, Via Group and an equity stake in Cornwall Energy - became profitable at operating level.
In the 2013 financial year, the group aims to grow revenue by between 10% and 16%, says Dittrich. He notes Datatec is “cautiously optimistic,” despite Europe remaining a risk.
Datatec expects growth from its emerging market operations, as well as from a recovery in the US, says Dittrich. He adds that underlying technology spend is healthy.
“We remain cautious about the near-term,” comments Montanana. “While Europe looks likely to remain challenging, we expect trading to improve in the US and a continued strong performance from our businesses in the rest of the world.”
Datatec will continue to make acquisitions as part of its growth strategy, says Dittrich. He explains that the company aims to enhance its geographic presence and increase scale, although deals will not be “blockbuster” in size.
Datatec has almost 6 000 staff globally and operates in more than 40 countries.
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