IMPROVED MIX DRIVES MARGIN
AN INCREASE IN THE amount of higher margin servicesorientated business saw steady information and communication technology infrastructure and solutions provider Datacentrix able to increase its profitability in the first half of the year to August despite an almost flat top-line performance over that period.
Revenue was marginally higher at R699,2m, from R693,7m in the comparable six months. However, earnings before interest, tax, depreciation and amortisation (EBITDA) profits rose by 11% to R73,7m, putting the business on a margin of 10,5% – higher than the 9,6% of the previous half-year. Datacentrix reported headline earnings per share growth of 21% to 26,8c, putting the share on a forward multiple (on annualised earnings) of 5,7 times.
It attributed slower than normal sales to some large clients delaying – but not cancelling – contract decisions due to current economic conditions. It generated less cash than in previous periods: R32,1m from operations compared to R81,4m in the comparable six months. But CEO Ahmed Mohamed says that was a mere issue of timing. It held R208m in cash at end-August and declared a 13c interim dividend.
least maintain EBITDA margins.
Microsoft skills, managed services and workflow solutions to pay off.
ing by major clients, financial services in particular.
tional technical skills as well as retaining staff, indicating the impact of the sector’s skills shortage.