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Datatec expects earnings bounce-back in FY 2015

Jens Montanana

Jens Montanana

Photo by Duane Daws

14th May 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JSE-listed information and communications technology (ICT) group Datatec on Wednesday said it expected revenues to reach in excess of $6-billion, with underlying earnings per share (EPS) to return to more than 40c during the 2015 financial year.

This came after the group ended the 2014 financial year to February with an underlying EPS of 35.7c, compared with the 43.1c achieved in 2013, while headline earnings a share contracted from 40.8c the year before to 31.6c in the 12 months to February.

Earnings before interest, tax, depreciation and amortisation fell from $185.5-million in 2013 to $175.3-million during the year under review.

Datatec’s revenue for the year climbed 8% to $5.69-billion.

“We continued to grow revenue and our gross margins have been stable [at 14.8%],” said CEO Jens Montanana, pointing out that Logicalis reported a strong year with operating profits up 23%.

Westcon continued to underperform as a result of several factors, including the roll-out of an enterprise resource planning, or ERP, system in North America, which hampered transaction volumes.

"In the current [2015] financial year, we anticipate another robust performance for Logicalis while Westcon will continue to consolidate and focus on improving operational leverage,” he said.

Capital distribution for the year to February was maintained at 17c a share.

Edited by Creamer Media Reporter

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