Datacentrix to use cash to pursue acquisitions - TechCentral

Datacentrix to use cash to pursue acquisitions

Ahmed Mahomed

Ahmed Mahomed

JSE-listed IT services business Datacentrix will use a “healthy” cash balance to pursue acquisitions, its CEO, Ahmed Mahomed, said on Tuesday after publication of its interim results.

Datacentrix has increased headline earnings per share by 14%, to 27,7c, in the six months ended 31 August 2015. The improvement comes on the back of an 11,3% growth in revenue to R1,2bn.

The IT services company generated cash from operations of R107m and had a closing cash balance of R261m. CEO Ahmed Mahomed said the “healthy cash position” will allow Datacentrix to “pursue suitable acquisitions”.

The company recently concluded the acquisition of Infrasol from Pinnacle Holdings, its parent company.

“Synergies, including integration into Datacentrix’s premises, financial, logistical and operational systems, are being leveraged. The combined capabilities of these entities will drive growth and, at this early stage, have resulted in the group securing new business,” said Mahomed.

He said Datacentrix is now keen to explore future growth elsewhere in Africa. “The strategy is to follow customers further north into the continent.”

Of its three divisions, managed services contributed 35% to group earnings, with the technology division responsible for 46%, and business solutions 10%.

The board declared a gross cash dividend of 9,23c/share. The Datacentrix share price was last quoted at R4,90. It has added 27% in the past 12 months.  — © 2015 NewsCentral Media

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