Datatec, the largest technology company listed on the JSE, has declared a maiden interim dividend after turning in a strong financial performance in the six-month period to the end of August.

The multinational IT group, which has its primary listing in Johannesburg and a secondary listing in London, has grown revenue by 14% to US$2,4bn and lifted earnings before interest, tax, depreciation and amortization by 46% to $85,4m.

This has prompted it to declare an interim dividend of US$0,07/share.

“In this economic climate, many customers and suppliers are increasingly seeking to do business with large, well-capitalised multinational companies,” says CEO Jens Montanana. “This is directly benefiting the group as our businesses are gaining market share in many of the markets in which we operate.”

In the past five years, Datatec has handed about $125m to shareholders in the form of dividend payments.

Analyst firm Frost & Sullivans says a “successful diversification strategy has paid off handsomely, with an even revenue split across its three main operating platforms of North America, Europe and the rest of the world”.

“This has been driven by a management team that remains focused on a consistent strategy of targeting earnings-enhancing acquisitions,” says Frost & Sullivan analyst Ishe Zingoni. ” Over the reporting period, Datatec finalised three distinct acquisitions that will optimise its overall product mix and create higher margins.” — Staff reporter, TechCentral