Group says all divisions have delivered improved financial performances
07 October 2024 - 09:06
UPDATED 07 October 2024 - 19:44
byJacqueline Mackenzie
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ICT group Datatec expects its first-half headline earnings per share (HEPS) to be as much as 74.6% higher as all its divisions delivered an improved financial performance.
HEPS were expected to be between 10 US cents and 11c, 58.7%-74.6% higher than a year ago, it said in a statement on Monday.
Earnings per share (EPS) were expected to be 74.6%-90.5% higher, while underlying EPS, which exclude certain items, were expected to be 50.7%-64.4% higher year on year.
The market cheered the update with Datatec’s shares price gaining the most since April, up 4% to R37.44, giving the group a market cap of R8.8bn.
After a review of peer reporting and to more closely align the definition of underlying earnings per share (EPS) to the group’s adjusted earnings before interest, tax, depreciation and amortisation (ebitda) metric, Datatec has decided not to exclude unrealised foreign exchange gains or losses from underlying earnings from the first half of 2025.
The group said all divisions had delivered an improved financial performance. Westcon continued its profit growth trajectory and Logicalis International strongly increased profitability. Logicalis Latin America had an improved performance compared with the first half of 2024, it said.
With operations in more than 50 countries, the group is one of the JSE’s largest ICT services firms. Established in 1986, the company operates predominantly through two main divisions: Logicalis; and Westcon International, with the latter distributing security and networking technology products.
In January, Datatec acquired UK-based Rebura in a deal that aims to augment its cloud-based solutions. The group has been working on ways to unlock value from its existing structure, while investing in the growth of its core businesses. /With Mudiwa Gavaza
Update: October 7 2024 This story has been updated with new information.
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Datatec expects big jump in first-half
Group says all divisions have delivered improved financial performances
ICT group Datatec expects its first-half headline earnings per share (HEPS) to be as much as 74.6% higher as all its divisions delivered an improved financial performance.
HEPS were expected to be between 10 US cents and 11c, 58.7%-74.6% higher than a year ago, it said in a statement on Monday.
Earnings per share (EPS) were expected to be 74.6%-90.5% higher, while underlying EPS, which exclude certain items, were expected to be 50.7%-64.4% higher year on year.
The market cheered the update with Datatec’s shares price gaining the most since April, up 4% to R37.44, giving the group a market cap of R8.8bn.
After a review of peer reporting and to more closely align the definition of underlying earnings per share (EPS) to the group’s adjusted earnings before interest, tax, depreciation and amortisation (ebitda) metric, Datatec has decided not to exclude unrealised foreign exchange gains or losses from underlying earnings from the first half of 2025.
The group said all divisions had delivered an improved financial performance. Westcon continued its profit growth trajectory and Logicalis International strongly increased profitability. Logicalis Latin America had an improved performance compared with the first half of 2024, it said.
With operations in more than 50 countries, the group is one of the JSE’s largest ICT services firms. Established in 1986, the company operates predominantly through two main divisions: Logicalis; and Westcon International, with the latter distributing security and networking technology products.
In January, Datatec acquired UK-based Rebura in a deal that aims to augment its cloud-based solutions. The group has been working on ways to unlock value from its existing structure, while investing in the growth of its core businesses. /With Mudiwa Gavaza
Update: October 7 2024
This story has been updated with new information.
mackenziej@arena.africa
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