Datatec`s headline earnings per share fell to 136.8c in the six months to 30 September compared with 189.5c a year earlier, thanks largely to restructuring costs of R63 million incurred by UK subsidiary Logical.
Excluding restructuring costs, the international networking and e-services group`s headline earnings decreased to 165.8c a share from a previous 191.3c.
Executive chairman and CEO Jens Montanana says the group believes headline earnings excluding restructuring costs provide the most meaningful measure of Datatec`s trading performance.
Revenue for the period rose to R9.55 billion (1999: R5.6 billion). Operating profit before depreciation and finance costs increased to R488 million (R423 million), with pre-tax profit falling to R317 million (R330 million).
Taxation of R175 million (R123 million) led to an after-tax profit of R142 million (R207 million).
Montanana says the overall tax rate of 55% is higher than the standard South African tax rate of 30% because of certain non-tax-deductible expenditure during the period.
An attributable earnings figure of R117 million was lower than the R196 million of last year.
Montanana says all the lines of business, particularly Westcon, showed strong revenue growth.
He adds that the preparation for Westcon`s US listing is well underway and the flotation is expected by the end of March next year. Datatec plans to retain a majority stake.
Independent London listings are planned for Mason in the second or third quarter of next year and Logical soon afterwards. Montanana says this is in line with the group`s stated intention to maximise shareholder value by unlocking latent value in each of its core divisions.
It is also planning a JSE listing for Internet service provider UUNET SA.
Although Datatec foresees similar restructuring costs for Logical in the current half-year, Montanana says the benefits of the Westcon listing, which is expected to raise $150 million to $250 million, and the Logical restructuring will provide increased returns for shareholders in the near term.
Logical`s restructuring is expected to be completed by the end of this financial year.
Datatec`s share closed R2.70 up yesterday at R53.30.
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