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Diversity key for Datatec

May 14 2009 09:55

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Johannesburg - ICT group Datatec on Thursday reported underlying earnings per share of US33.1c for the year ended February 2009 from US47.3c a year ago.

Revenue rose to $4.2bn from $4.0bn in 2008, while earnings before interest, tax, depreciation and amortization (EBITDA) declined to $126m from $151m.

Cash generated from operations rose to $195m from 2008's $77m.

The capital distribution per share of 12 US cents was ucnaged from 2008.

The group said its scale and diversity continues to mitigate the impact of the current economic climate and the group has shown relative resilience in a tough market.

Approximately 50% of EBITDA has been derived from integration, services and consulting, it noted.

A highlight was the strong performance from Logicalis in all regions with the division reporting EBITDA up 57% to $57m.

Chief executive Jens Montanana commented: "Despite very tough market conditions that impacted our second half, the group has delivered a solid performance with further improvements in revenues and increased operating cash flows.

"We have responded swiftly and effectively to reduce and adjust our cost base to cope with an economic slowdown which has impacted globally. Our divisional structure, with multiple lines of business and geographic diversification has proved to be a strong asset in the current climate."

Montanana added the group has achieved a particularly strong performance in Logicalis, where all regions contributed strongly, breaking through $1bn revenue and 5% EBITDA margin. As a result, integration services and consulting activities now account for approximately 50% of the group EBITDA.

Sound working capital management across the group has resulted in a substantial improvement in operating cash flow. Westcon in particular had an outstanding period of cash generation during the second half of the year, he said.

"The group completed the year with improved working capital and a net cash position of $36.2m illustrating both the defensive nature of our business model and the positive actions taken across the business to adapt to the sharp deterioration in economic activity in many of the markets in which we operate."

- I-Net Bridge

 
 
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