Ac­quis­i­tive

Finweek English Edition - - Companies&markets -

IT DIS­TRI­BU­TION AND SER­VICES com­pany Datatec has shown ro­bust per­for­mance de­spite an in­creas­ingly dif­fi­cult op­er­at­ing en­vi­ron­ment in which sim­i­lar busi­nesses have been tank­ing. In its re­cently re­leased re­sults for the six months ended Au­gust 2009, Datatec re­ported a de­cline in EBITDA of 37,5% to US$44,6m com­pared with the same pe­riod last year. How­ever, cash gen­er­ated from op­er­a­tions in­creased to $184m from $66m over the same pe­riod last year and $129m from the pre­ced­ing half.

Re­plete with cash, Datatec plans to take ad­van­tage of mar­ket con­di­tions by mak­ing timely ac­qui­si­tions. CEO Jens Mon­tanana says trad­ing con­di­tions re­main chal­leng­ing for Datatec but are be­com­ing more pre­dictable. He’s ex­pressed con­fi­dence in a re­turn to over­all rev­enue growth in the sec­ond half of the year, which is tra­di­tion­ally stronger. He adds op­er­a­tion gear­ing has re­duced costs and the ben­e­fits of that un­der­tak­ing will now be­gin to show.

Datatec has shown suc­cess in its ad­vances into Brazil and In­dia and af­firms it’s looking for “strate­gi­cally sig­nif­i­cant ini­tia­tives” in China and other parts of Asia.

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