Dual-listed Datatec has hit its full-year revenue forecast of $6.4 billion, its results to February showed this morning.
The company says group revenue gained 13.3% on last year's $5.7 billion, and its gross profit grew from $841.4 million to $932.9 million. It says underlying earnings per share gained 17.1% to 41.8 US cents.
Datatec adds it saw continued growth in networking, mobile communications, security and ICT infrastructure managed services, although the continued dollar strength is expected to hinder growth in some markets and increase the relative contribution from the US in the future.
The company adds it continues to focus on improving operational efficiency, and has seen better operating margins across all divisions as a result.
CEO Jens Montanana explains revenue growth was driven by a strong recovery in sales and market share at Westcon. Westcon, which accounts for about 75% of Datatec's revenue, had been battling to grow its top line because of the rollout of an enterprise resource planning system, but subsequently got over this hurdle.
He adds Logicalis delivered an improvement in the second half, leading to profitable growth year-over-year. "We are also pleased with the improved operating efficiency across all divisions."
Montanana notes Datatec has maintained its dividend over the past three years despite volatile earnings.
"We expect our diverse operating portfolio to continue to deliver revenue growth, as Logicalis adapts its capabilities to address cloud-based infrastructure opportunities and Westcon increases its momentum with global vendors."
In the six months to end August, Datatec said it achieved "solid" revenue growth of 8%, to $3 billion.
Share