STEADY SHE SAILS
THREE YEARS under the helm of a new management team, London- and JSE-listed Dimension Data is looking far healthier, with continued operational and performance improvements.
In the year to September 2006, Didata reported operating profit growth of 50% to $85m (R660m at the year-end exchange rate), with earnings/share of $0,27c (R0,21) on revenue growth of 15,9% to $3,1bn (R24,2bn). It declared a maiden dividend of $0,01c/share (ZAR 7,7c).
The March interim results will be reported around May. The market will no doubt want to see if it has progressed in Europe, the underperforming regional operation.
The latest annual report shows a strong institutional shareholding, the top three being Venfin (18,32%), Allan Gray (14,53%) and Sanlam Investment Management (10,16%).
Didata said it was evolving from an IT infrastructure supplier to a strategic technology and business supplier.
Last year, it expanded into other geographical areas with key partner Cisco and also moved closer to Microsoft. OPPORTUNITIES • An increasingly deregulated South African telecoms mar-
ket bodes well for subsidiary Internet Solutions. • Growth drivers include the increasing demand for security solutions and the continued trend towards converged communications. RISKS • Europe remains a problem child. • Any technology company with very close relationships to key vendors – as Didata has with Cisco and others – does not entirely control its destiny.