JSE-listed integrated information and communications technology systems provider Datacentrix on Tuesday posted double-digit growth for the year ended February.
CEO Ahmed Mahomed explained in a statement that a continued focus on intelligent, higher-value solutions was contributing positively to group performance, with areas such as managed services, security, data centres and storage solutions, in particular, gaining momentum in the market.
The group’s earnings after tax increased from R77.3-million last year to R88.9-million during the 12 months to February, while headline earnings a share jumped 15% to 45.6c.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 21% to R152.4-million during the year under review, with an Ebitda margin of 6.7%.
Datacentrix also reported a 19% hike in group revenue to R2.3-billion for the 12 months to February, supported by strong growth in managed services and technology.
The managed services division contributed 49%, business solutions 11% and the technology division 37% of group profit before tax.
The managed services division reported a 25% growth in revenue on the back of positive contributions from the outsourcing, managed print and document solutions businesses, while the company’s acquisition of eNetworks boosted the unit’s Ebitda by 46%, with a healthy operating margin of 12.7%.
The technology division’s operating margin increased from 2.8% to 2.9%, with year-on-year revenue growth of 16% during the year to February.
While revenue in the business solutions unit increased 27%, Ebitda fell 34% owing to challenges experienced with a specific client.
“The company maintained sound financial and operational disciplines, with cash generated from operating activities amounting to R142.6-million, reflecting a closing cash balance of R203-million,” Mahomed said.
The group achieved positive bottom line growth, underlining its execution capacity and the fact that the business was now competing effectively in its new areas of competence, he concluded.