SA’s largest listed technology group, Datatec, has turned in a strong performance in its 2011 financial year, growing revenue by 15% to US$4,3bn and headline earnings by 46% to $44m. It has lifted its dividend by 8% to $0,13.
CEO Jens Montanana says the performance was driven by “strong operational leverage and an improving global economy”, allowing earnings before interest, tax, depreciation and amortization growing at twice the rate of revenues.
“The group’s geographic diversity and improving business mix … is helping to insulate it against variations in the recovery within the geographies in which Datatec operates,” the group says in a statement.
The US, Datatec’s largest market, continued to show signs of recovery; Asia, South America and the Middle East remained its strongest performing markets.
Almost three-quarters of Datatec’s sales came from distribution, with only 7% from services. Its biggest subsidiary, Westcon, contributed 74% of revenue (from 76% in 2010), with Logicalis making up 24% of the mix (22% previously).
For the 2012 financial year, Datatec expects revenues of between $4,8bn and $5,1bn, with further improvement in operating profit margin. Its share price was trading up 0,6% in early trade on the JSE on Wednesday. — Staff reporter, TechCentral
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