STILL BE­ING HAM­MERED

Finweek English Edition - - Openers -

SHARES IN DATATEC, a JSE- and Lon­don AIM-listed tech­nol­ogy dis­trib­u­tor and ser­vice provider, were ham­mered de­spite re­cently re­port­ing seem­ingly de­cent half-year re­sults, putting the counter on a for­ward earn­ings mul­ti­ple on an­nu­alised earn­ings of around five times. From as high as R31 ear­lier this year, Datatec’s price closed as just R17,80/share a few days af­ter its re­sults af­ter fall­ing al­most 15% to R19,40 on the day.

Though it in­sisted it was weath­er­ing the cur­rent global fi­nan­cial cri­sis well and was po­si­tioned to con­tinue do­ing so, the mar­ket was dis­ap­pointed with Datatec’s num­bers. It re­ported an 18% in­crease in rev­enue to US$2,27bn (roughly R23bn at re­cent ex­change rates of around US$1/R10), half of which was or­ganic and half ac­quis­i­tive. It’s tar­get­ing full-year rev­enues of about $4,6bn (roughly R46bn). The key con­trib­u­tor to ac­quis­i­tive growth was buy­ing Promon in Brazil, con­cluded at the beginning of May.

Head­line earn­ings per share were US$0,17, a 5% in­crease on the com­pa­ra­ble six months. Datatec an­tic­i­pates a sim­i­lar, if not bet­ter, sec­ond-half per­for­mance.

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