Johannesburg- and London-listed technology distribution and services group Datatec has topped US$5bn in annual sales for the first time.
In the financial year ended 29 February 2012, the group reported sales of $5,03bn, up 17% from $4,3bn a year earlier. Headline earnings nearly doubled from $44m to $80,2m.
Datatec generated cash of $190,2m, from $142,2m previously and increased its capital distribution to shareholders for the full year to $0,16/share from $0,13.
Europe remained under pressure but the economic recovery in the US and elsewhere helped underpin the strong financial performance, prompting Datatec to forecast that its revenues in the current financial year will be between $5,5bn and $5,8bn.
“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,” says group CEO Jens Montanana.
“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.”
Montanana says South America and the Asia-Pacific region remain Datatec’s best performing markets, with Brazil doing “exceptionally well”.
“We have a mature and robust business model, which has become increasingly predictable and demonstrates defensive attributes in difficult economic circumstances,” he says. “We remain cautious about the near term. 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.”
Distribution continues to contribute most of the group’s revenues, with subsidiary Westcon accounting for 74% of sales, flat on a year ago, and 64,9% of earnings before interest, tax, depreciation and amortisation (66,3% a year ago).
IT services and solutions company Logicalis contributed 25% of group revenues, up one percentage point from the 2011 financial year. — (c) 2012 NewsCentral Media