Multinational IT group Datatec has continued to improve its performance in line with a recovery in the global economy, boosting revenue in the first half of its financial year by 19%, to US$2,13bn.
However, CEO Jens Montanana says the group is looking for more acquisitions to bolster the growth it has reported in the six months to end-August. In the period, earnings per share rose 37% to $0,158.
“Overall, we are cautiously optimistic about the market’s recovery, which is still fragile in places. We are confident our profitability and margin expansion across all divisions will continue in line with our previously published forecasts,” he says.
Unlike many of its competitors, Datatec says the weaker US dollar has proved a boon to its financial results. Montanana says technology spend tends to increase when the dollar is weak.
Datatec’s largest subsidiary, IT distributor Westcon, has continued to perform well, with third-quarter revenues enjoying sequential growth over the first two quarters, with higher margins and improved profits.
Westcon is expanding its operations aggressively across emerging markets. In Africa it now has offices in Cameroon, Ghana, Kenya, Nigeria, Tanzania and Uganda.
The emerging markets segment, representing Africa, India and the Middle East, represents 7% of group revenue.
Montanana says Datatec will consider acquisitions in Asia to grow its footprint in the region.
Meanwhile, Datatec has upped its offer for SA technology distributor Comztek. If the deal goes ahead, Comztek will become part of Westcon.
Datatec first announced its offer to buy Comztek at the beginning of September, offering R97m in its initial bid. It’s now increased the offer to R101m after completion of a due diligence process. The offer will remain open until Monday.
Comztek’s primary shareholder, Mustek, is not happy about the proposed deal. Datatec says it has received support for the deal from management and shareholders, except Mustek, which holds 41,8% of Comztek’s equity. — Candice Jones, TechCentral