JSE-listed information and communications technology multinational Datatec says all its divisions delivered solid performances for the financial year ended February 28, as falling operating costs offset the effect of lower gross profits owing to a change in revenue mix, which saw an increased contribution from the distribution segment.

Revenue decreased by 2.5% year-on-year to $4.1-billion, while earnings before interest, taxes, depreciation and amortisation (Ebitda) were $118.6-million, down from $158.7-million in the previous financial year.

Ebitda margin was 2.9%, down from 3.8% as restated for the prior financial year.

Excluding restructuring costs, adjusted Ebitda was $141-million and the adjusted Ebitda margin was 3.4%.

Overall operating costs, including the restructuring costs of $22.4-million, were $571.9-million, lower than the operating costs of $582.9-million for the prior year.

The group's net asset value a share increased by 1.5% to $2.92 a share, up from $2.88 a share.

Headline earnings a share were $0.02, down from $0.06 in the previous year.

"Datatec's solid execution during a year beset with unprecedented Covid-19 pandemic-related disruptions has proven our operational resilience. Our divisions provide many of the products and services required to support a remote information technology networked-based way of doing business.

"This digitisation trend is set to continue and we have already seen a structural shift in our business away from many forms of traditional hardware to software and services with growing annuity revenue," says Datatec CE Jens Montanana.

He added that all of the group's divisions delivered strong results and operating cash flows, as well as excellent working capital management.

The group also ended the financial year with reduced net debt and enhanced liquidity, following the refinancing of key facilities, including with new banking partners, on substantially improved terms, reflecting the improvement in fundamentals across the business over the last few years.

"Although uncertainty remains around the Covid-19 pandemic with many countries still in lockdown, Datatec is well positioned to support its customers' requirements and we anticipate the positive momentum generated in the 2021 financial year to continue into the current financial year," Montanana says.