Datacentrix profit falls on slow trade, slimmer margins
TECHNOLOGY group Datacentrix’s headline earnings per share (HEPS) took a hit in the six months to August, falling 28% from 26.8c to 19.2c because of difficult trading conditions and deflated margins.Its shares fell 4% to R4.51 after it announced it was cutting its interim dividend to 11.25c from 13.4c last year.But trading conditions had improved since August, Datacentrix said in its interim results released on Tuesday."Our margins are still at about 6%. Our competitors’ margins are between 2% and 3%," CEO Ahmed Mahomed said.The group managed to grow its revenue from R912.7m to R976.7m during the reporting period. Mr Mahomed said the company had maintained sound financial and operational disciplines, with cash generated from operating activities amounting to R52.7m. The closing cash balance was R288m.At the end of the reporting period, the company had no interest-bearing debt."The group has seen a significant improvement in trading conditions during the second quarter of the fiscal ...
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