http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.01Change: 0.00
R/$ = 10.67Change: -0.04
Au 1287.51 $/ozChange: 0.01
Pt 1424.50 $/ozChange: -1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 18, 2012

IT group focusing on managed services growth

Back
Datacentrix|Information Technology|Ahmed Mahomed|Gary Morolo|Infrastructure|Bearing|Information Technology
||Infrastructure|Bearing|
datacentrix|information-technology-industry-term|ahmed-mahomed|gary-morolo|infrastructure|bearing|information-technology
© Reuse this



JSE-listed information technology company Datacentrix is seeking to grow annuity revenue by investing in skills to support its services and business solutions development, while reducing its dependence on government-related business, chairperson Gary Morolo reports.

In the past, more than 50% of the group’s revenue was derived from the public sector.

“Managed services and business solutions now account for more than half of the group’s earnings,” said Datacentrix CEO Ahmed Mahomed at the company’s financial results presentation, held at the Inanda Club, in Sandton, in April.

The company grew its revenue by 11.6% to R1.76-billion, but experienced sustained margin squeeze, with operating profit falling to R123-million from R124-million during its financial year ended February 29, 2012.

Its earnings before interest, taxes, deprecia- tion and amortisation (Ebitda) dropped to R145-million from R150-million, which means its Ebitda margin decreased to 8.3% from 9.5%.

The decreasing margins have prompted the company to increase investment in its skills base, which is aimed at future growth. The company will also continue to focus on its organic growth and is not actively seeking acquisitions except to jump-start targeted new growth areas, says Mahomed.

“The three- to five-year strategic thrust (towards a services-based revenue model) remains unchanged and implementation has progressed satisfactorily,” says Morolo.

The scarcity of skills in the information and communication technology sector led to Datacentrix focusing on skills development, learnerships and vocational training programmes, which have been successful, he adds.

“We also deploy graduate-level skills in specific areas, which will be a long-term boon, and we focus strongly on internal skills devel- opment, opting to develop managers from internal staff.

Datacentrix increased its headline earnings per share by 1.2% to 46.9c a share and has R313-million cash on hand with no interest-bearing debt, which is partly a requirement as a vendor for blue-chip companies, and is disbursed and recharged during the course of a financial year, explains Morolo.

Datacentrix’ improved mixture of business reduces its reliance on depressed commodity infrastructure spending in the private and public sectors, while the managed services and business solutions units in the company are showing good margins. Coupled with its strong market position and strong vendor exposure, the company is placed in a favour- able position, concludes Mahomed.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other ICT News
As JSE-listed Jasco ends a three-year restructuring programme, the group expects to return to profitability in the 2014 financial year. “Although the 2014 financial year continued to be impacted on by planned restructuring costs and very difficult market...
The ability to use a smart sensor concentrator to create a centralised, smart sensor network in factories, plants, mines and remote sites means that older legacy industrial control systems can be integrated and leveraged as a low-cost step towards fully smart...
The Independent Communications Authority of South Africa (Icasa) has outlined the conditions for the assignment of capacity on the digital television channels on Multiplex 3 and any excess capacity on Multiplex 1. The latest regulations overseeing the long-awaited...
More
 
 
Latest News
The pump prices of both grades of petrol and wholesale diesel, as well as the maximum retail prices of illuminating paraffin and liquefied petroleum gas (LPG), are set to decrease from September 3, the Department of Energy said on Friday. Petrol would drop by 67c/l,...
The amount owed to municipalities for services has continued to rise, reaching R94-billion by June, compared with the R93.3-billion recorded in December. Households still accounted for the bulk of the aggregate municipal consumer debts; however, this had declined...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks