Dual-listed IT solutions and services company Dimension Data has set new targets, after beating its previous goals.
The company this morning announced its results for the six months to March and reported sales of $2.2 billion, an increase of 11.1% in reported currency.
Operating profit increased 21%, to $107.5 million, and the operating margin expanded to 5%, from 4.6%, as its services offerings expanded. Earnings per share grew 20%, to 4.2c, and the group ended the half-year with cash in the bank of $493 million.
CEO Brett Dawson says the company is “optimistic about our market positioning and relevance, and believes the market has turned in terms of clients' willingness to spend on IT and IT services”.
The company will continue to invest in resources to meet market demand and accelerate its services strategy, he says.
Looking brighter
“We anticipate that the second half of 2010 will see further recovery in client spend, and are confident our revenue targets of single-digit constant currency growth in revenue for the full year are achievable.”
Dimension Data has set a target of growing constant currency revenue by at least 10% on a compound basis in the next three to five years. The company also aims to have a 7% operating margin by 2015.
Last year, the company beat its margin target of 5% a year early. About four years ago, the company - once the darling of the IT world - promised to take margins to 5%. In the year to September 2009, it achieved an operating margin of 4.9%, an improvement on last year's 4%. In 2005, the margin was 2.1%.
“We are optimistic about the group's short- and medium-term prospects, and continue to see evidence that our value proposition provides competitive differentiation in the marketplace,” says Dawson.
Shares in the company jumped 3%, to R10.72, in early morning trade on the back of the results.
Share