Alviva delivered the goods in its half year to December, bumping up its headline EPS (HEPS) 23.5% and building on the 23.3% rise in its year to June 2017. The tech group’s reward from the market is a poor-growth-prospects 8 p:e. "The market is looking at Alviva as being a product distributor only," says Daniel Isaacs of 36One Asset Management. "The trick people are missing is the acquisition of full control of Datacentrix in February last year. It increased the group’s exposure to ITC services and solutions markedly." Alviva CFO Richard Lyon says: "I do not understand why being a distribution company should mean that it has to be on a low market rating. "Managed properly with a focus on factors such as tight cost and working capital control, distribution is a good business to be in." In its former guise as Pinnacle Technologies, Alviva concluded the acquisition of the 42.9% of Datacentrix it did not already own in a deal worth R563m in February 2017. The deal provided HEPS with a bi...

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