Datacentrix rakes in over R1bn in revenue

Johannesburg - Integrated ICT solutions and services provider Datacentrix generated revenue in excess of R1bn in the six months to August 31 2013.
 
The group’s results released on Tuesday showed growth in both the Managed Services and Infrastructure areas of the business.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 22% to R70.1m. Earnings increased from R37.5m to R40.9m and headline earnings increased from 19.2c to 21c a share.

Cash generated from operations of R48.1m contributed to a closing cash balance of R245.6m.

“We have seen an improvement in performance from our strategic investment areas,” says CEO Ahmed Mahomed.

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“Our continued focus on intelligent, complex solutions is contributing positively to Group performance on both profitability and margins.”

Datacentrix has been particularly successful in the areas of security, data centre and storage solutions.

“The Group’s execution capability is also being acknowledged by the renewal of all of its key outsourcing contracts without going to market,” says Mahomed.

“The Group’s performance was characterised by growth in solutions-based revenue not only in Managed Services but also Infrastructure."

The Managed Services division contributed 45% of Group profit before tax while the Infrastructure division contributed 42%.

Within the Business Solutions division, the Business Intelligence (BI) and Enterprise Resource Planning (ERP) businesses showed marginal improvement in profitability for the six months.

The NokusaEI acquisition has consolidated the Group’s position as a leading Enterprise Information Management (EIM) solutions provider and contributed positively to the performance of the EIM business.


“Looking ahead, Datacentrix will continue to provide innovative solutions, enabling the implementation of our clients’ business strategies by harnessing the power of technology," says Mohamed.

“We have made a significant investment in skills and capability as we move from a commodity space into a solution systems integration space.

"We believe that this value-driven, customer-centric approach will fortify our position as one of the leading ICT players in the market.

"To complement our organic growth strategy we will continue to look for suitable acquisition opportunities to broaden our reach and further grow our capability.”

The Group declared an interim gross cash dividend of 12.32c a share.

 - Fin24