http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.08Change: 0.00
Au 1216.40 $/ozChange: -0.63
Pt 1339.00 $/ozChange: 4.00
 
 
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|Services|Ahmed Mahomed|Gary Morolo|Infrastructure|Bearing|Information Technology
|Services|Infrastructure|Bearing|
datacentrix|information-technology-industry-term|services|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
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
BRENDAN WIDLAKE Stratus fault-tolerant servers ensure continuous availability of operational systems in critical processes
A computing platform to ensure the availability of critical processes and control systems is receiving increased attention in South Africa to ensure that the software driving new industrial systems, including automated and robotic processes, functions continuously,...
More
 
 
Latest News
President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
JSE-listed York Timber Holdings on Friday said it expected its operating profit for the year ended June 30 to be between 25% and 30% lower than that of the prior year. As a result of the lower operating profit, combined with a 1% increase in the company’s biological...
Engineering solutions provider ELB Group has reported an 18% increase in turnover for the year, boosting overall income, from R1.9-billion in 2013, to R2.3-billion for the 12 months ended June 30. Describing this as “a satisfactory result, given the current difficult...
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 road...
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
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
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