STILL BEING HAMMERED
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.