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.