Johannesburg, 23 Apr 2002
IT solutions and infrastructure provider, Datacentrix has announced another set of solid financial year-end results, with turnover increasing 32 percent to R521.6 million and operational performance up by 62 percent to R39.4 million. In addition, headline earnings per share grew 48 percent to 16.7 cents and earnings per share 39 percent to 13.5 cents. Cash generated by operations totalled R25.2 million, resulting in R71 million cash on hand with no interest bearing debt.
The largest contributor to the Group`s positive results continues to be its Infrastructure division. "There has been an incremental growth in the sheer size of deals being brought in today, with existing customers placing larger orders on a multi-year basis," says Gary Morolo, executive chairman of the Datacentrix Group.
"The Infrastructure division has seen great success in the server-centric storage solutions side of the business, moving into the enterprise storage marketplace with the provision of storage area networks (SANs). The SAP R/3 document and data management sector has also seen positive development over the past year."
The company has also consolidated its security offering under a new Security division. The division will open up new markets and extend the company`s service offering to customers by consolidating existing security products under one division dedicated to servicing market requirements for comprehensive security solutions.
Datacentrix` Solutions division, which focuses on hosted services and the consulting, supply and implementation of business applications for the Microsoft platform, was recently strengthened with the award of a revised three-year, R108 million contract with Premier Foods. During March this year, the division`s already extensive skills base was enhanced through the acquisition of Microsoft integration and development skills. "Solutions will be a high growth area going forward, including the acquirement of skills to complement existing offerings," Morolo adds.
A new stand-alone Services division has also been created to operate in tandem with the existing Infrastructure and Solutions divisions. "The new division ensures that Datacentrix can now provide a more efficient one-stop service - supplying services ranging from the traditional vendor warranty work, software upgrades and migration to infrastructure outsourcing."
In addition, Datacentrix management took a strategic decision to exit its involvement in e-community initiatives, due to slow growth in the marketplace. To give effect to this decision, the organisation purchased the 30 percent of Commerce Centre of Southern Africa held by ParaNet LLC and exited all community-based projects, including the fast-moving consumer goods (FMCG) National Product Catalogue initiative. Commerce Centre will be changing its name to Datacentrix Solutions (Pty) Ltd, to reflect this strategic change. The representation of well-established vendors, including Sterling Commerce, has also been brought fully within the Datacentrix fold.
Commerce Centre, being a start up e-commerce business, had incurred planned losses during the last two years. With these changes, no further losses will accrue to the group.
"Datacentrix continues to embrace its Black Economic Empowerment (BEE) strategy at all levels of the organisation. Significant progress has been made in the general employment equity profile, resulting in 42 percent of all personnel being Black and 61 percent from the designated group at year-end. We also had our first intake of previously disadvantaged bursary students, who took up positions at Datacentrix earlier this year."
Says Morolo: "To date, our focus on business-critical solutions has shielded Datacentrix from the global and local slowdown in IT expenditure. We are positive that the growth will continue in the next financial year and remain well positioned to take advantage of the continued shakeout and consolidation of the IT industry."
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