IM­PROVED MIX DRIVES MAR­GIN

Finweek English Edition - - Companies & Markets - BELINDA AN­DER­SON

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.

OP­POR­TU­NI­TIES

least main­tain EBITDA mar­gins.

Microsoft skills, man­aged ser­vices and work­flow so­lu­tions to pay off.

RISKS

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.

DAT­A­CEN­TRIX HOLD­INGS

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