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Johannesburg - Specialist global IT services and solution provider Dimension Data Holdings [JSE:DDT] said Thursday it had a strong trading performance for the three month period to June 2010, extending the return to growth seen in the second quarter on the 2010 financial year.
Turnover in constant currency increased year-on-year by approximately 22% compared to the third quarter in 2009.
Features of the quarter were a strong performance from the System Integration (SI) business and ongoing weak trading in Plessey, it said.
SI performed very well growing revenues strongly. Operating leverage drove good growth in operating profit and an improved operating margin. Product volumes recovered strongly, whilst managed services continued to grow in double digits.
All regions recorded growth in turnover and improved operating margins were achieved in four out of the five regions.
The operating profit improvement in the Americas was particularly pleasing while Asia's operating profit reduced slightly, in line with expectations. The SI business remains well positioned going into the fourth quarter.
Trading in Internet Solutions and Express Data was satisfactory, while Plessey was slightly loss-making for the quarter impacted by weak order volumes in the African business.
Working capital was well managed during the period and the group's balance sheet remains robust with a healthy cash balance, it said.
The group remains confident that its target of single digit constant currency revenue growth for the full year is achievable.
On July 15 Nippon Telegraph and Telephone Corporation (NTT), one of the largest global telecommunications service providers, and Dimension Data announced that they had reached agreement on the terms of a recommended acquisition of the entire issued and to be issued ordinary share capital of Dimension Data by way of a takeover offer
