Johannesburg - International ICT networking and services
business Datatec [JSE:DTC] on Wednesday reported a 122% rise in headline earnings
per share (Heps) for the first half of its financial year, as the group
continued to benefit from operating leverage and an improving business mix.
Heps for the six months to end-August 2011 increased to 19.5
US cents from 8.8c in the comparative period last year.
Excluding the effect of put option fair value adjustments,
Heps went up by 56% to 19.5c from 12.5c previously.
The group declared its first interim capital distribution
per share of 7c.
Group revenues increased by 14% to $2.44bn from $2.13bn with
33% of group revenue generated from North America, 34% from Europe, 13% from
Asia Pacific, 12% from Latin America and 8% from AIME.
Gross margins improved to 14.1% from 13.2% in the first half
of last year.
"These are very good results, given the current
environment. Despite the difficult economic conditions around the world, we
have been able to grow revenues and improve margins in all divisions,"
said Datatec CEO Jens Montanana.
"Gross margins and profits are up significantly as we
continue to benefit from operating leverage and an improving business
mix," he said.
Gross profit rose by 22% to $343.7m while earnings before
interest, tax, depreciation and amortisation (Ebitda) went up 46% to $85.4m,
which includes net unrealised foreign exchange gains of $0.5m. Operating profit
increased by 65% to $66.2m and underlying earnings per share increased by 38%
to 21.8c.
The group's operations generated $17.0m cash during the
period and at end-September it had net debt of $8.8m, after deducting long-term
debt of $19.1m and short-term debt of $8.6m.
Montanana said in this economic climate many customers and
suppliers were increasingly seeking to do business with large, well capitalised
multinational companies - something that was directly benefiting the group
since its businesses were gaining market share in many of the markets and
geographies in which it operates.
"Based on current trading conditions and exchange
rates, our forecast for the full year remains unchanged," said Montanana,
adding that the group's first interim capital distribution would result in a
total of $125m (about R1bn) having been distributed to shareholders since 2006.
Datatec said it would continue to pursue its long-term strategy of delivering sustainable, above-average returns to shareholders by focusing on a combination of organic growth in fast growing sectors of the ICT market, geographic expansion and earnings enhancing acquisitions.
During the first half, the group announced the acquisition
of three businesses aimed at strengthening its position in existing major
markets.
"The group will seek to improve its competitive
position and believes that the current economic climate has created a window of
opportunity for further attractive consolidation opportunities to enhance
margins, facilitate consolidation in proven markets and extend the group's
geographical reach," it said.
Datatec shares jumped over 3% on the JSE on Wednesday morning.
Datatec, which is also listed in London, is trading 3.1% higher at R39.87.