STRONG AND WELL-RUN

Finweek English Edition - - Companies & markets - BELINDA AN­DER­SON

BASED ON A RE­CENT trad­ing up­date, Dat­a­cen­trix will re­port head­line earn­ings of be­tween 38,7c (up 35%) and 41,6c/share (up 45%) for the full-year to Fe­bru­ary when it presents its re­sults later this month. The price ran up by 8% im­me­di­ately af­ter the news of the trad­ing up­date to 480c/ share, putting it on a for­ward price:earn­ings of be­tween 11,5 and 12,4 times.

The pos­i­tive up­date il­lus­trates trends in the en­vi­ron­ment more gen­er­ally, with com­pa­nies up­grad­ing their in­fra­struc­ture post the Y2k tech­nol­ogy re­fresh cy­cle. The strong econ­omy has also en­abled many com­pa­nies to up­grade their sys­tems and pro­cesses.

Dat­a­cen­trix would ben­e­fit from each of those and, given its em­pow­er­ment, should be well placed to win fur­ther Gov­ern­ment in­fra­struc­ture busi­ness (though chair­man Gary Morolo has em­pha­sised over the past few re­port­ing pe­ri­ods that’s no longer an ad­van­tage for it in the sec­tor).

How­ever, more than ben­e­fit­ing from the trend, Dat­a­cen­trix is also a strong, con­sis­tent and well-run com­pany. It gen­er­ated R56m in cash from op­er­a­tions dur­ing the first six months of its fi­nan­cial year and had cash on hand of R145m. OP­POR­TU­NI­TIES To ex­pand the ERP busi­ness unit, with di­vi­sional founder Charl Jou­bert re­sign­ing from the main board to fo­cus on strength­en­ing it. Fur­ther growth from mar­ket seg­ments, in­clud­ing Gov­ern­ment, en­ter­prise sys­tems and se­lec­tive out­sourc­ing. RISKS Com­pe­ti­tion from other em­pow­ered in­fra­struc­ture and re­lated ser­vices providers.

DAT­A­CEN­TRIX HOLD­INGS

Source: I-Net Bridge

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