Datatec reports 17% revenue rise to $5.03bn

JSE listed Datatec on Wednesday (16 May) reported a 17% rise in revenue for the year ended February 2012, to $5.03 billion, from $4.3 billion before.

The international Information Communications Technology (ICT) networking and related services firm recorded an operating profit of $150.64 million, from $104.98 million.

EBITDA improved 34% to $190.2 million, while cash generated from operations grew to $102.8 million, from $64 million in 2011.

Datatec reported diluted headline earnings per share of 42.5 US cents from 23.5 US cents in the prior comparative period, with diluted basic EPS at US 42.8 cents, from 22.4 US cents.

The group announced capital distributions of 16 US cents per share (R1.31) for the year, from 13 US cents in 2011, including a final distribution of 9 US cents per share (RSA 75c).

Jens Montanana, chief executive of Datatec, commented: “I am delighted to report on another successful year for the Group. Our unrelenting focus on operational performance has meant that once again, we have been able to substantially increase revenues and expand margins, resulting in the bottom line growing at twice the rate of revenues.

“Our global reach and diversity continues to serve us 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.”

Datatec said it continues to pursue its long-term strategy to deliver sustainable above average returns to shareholders by focusing on a combination of organic growth in the faster-growing sectors of the ICT market, geographic expansion and earnings-enhancing acquisitions.

Looking ahead, the group said that despite difficult economic conditions in certain markets in which it operates, companies’ balance sheets generally remain strong and technology spending continues to be healthy. “Security, unified communications and data centre infrastructure continue to be the key drivers for growth in our industry. Although risks remain in Europe, the Board expects a recovery in the US and strength in the rest of the world to support global growth.”

Datatec said that based on current trading conditions and prevailing exchange rates, the Board expects revenues for the 2013 financial year of between $5.5 billion and $5.8 billion and underlying earnings per share to be approximately 55 US cents and both earnings per share and headline earnings per share to be approximately 50 US cents.
Profit after tax is expected to be approximately $104 million.