IT infrastructure and solutions provider, Datacentrix, has announced interim results for the six-month period ended 31 August 2004. The company recorded an increase in operational profits (EBITDA) of 43% to R43 million and generated strong operating cash flows of R50,5 million, resulting in R146,9 million cash on hand, with no interest-bearing debt.
Basic headline earnings per share (HEPS) were up 30% to 14.9 cents and basic earnings per share (EPS) grew 37% to 12.6 cents. Net asset value improved 8% to 100 cents and tangible net asset value increased 16% to 86 cents.
"Datacentrix has maintained a compounded annual growth rate of above 30% in key business indices over the past few years. Maintaining this performance - given the continuing consolidation, and prevailing climate of deflation and the drop in real costs of IT infrastructure in both rand and dollar terms - is pleasing," says Datacentrix Executive Chairman, Gary Morolo.
"Our performance for the half year shows significant growth when compared to the sector, both in terms of turnover and profitability and points to measurable success in Datacentrix` identified key growth areas - the enterprise market, government sector and the Johannesburg region. Datacentrix continues to be a stable, vibrant company, driven by customer satisfaction, shareholder value considerations and by observing strong operational and financial disciplines.
"Our on-going reviews continue to reaffirm our basic strategy and business model while yielding the necessary refinements that have ensured our growth and have positioned us to unlock great growth potential."
Morolo adds that Datacentrix` strong performance may be indicative of the much anticipated beginning of an IT market turnaround. "The industry has been anticipating the start of a refreshment cycle, with many businesses having to replace equipment purchased four to five years ago. The decrease in the price of technology in real terms should also have a positive affect on this sector."
Datacentrix` early focus on Black Economic Empowerment (BEE) and transformation considerations continues to serve it well, particularly in light of the unfolding of the ICT Charter. Datacentrix ranks fifth of all JSE Securities Exchange-listed companies and is the highest ranked IT company on the empowerment ladder. It is also one of only three IT companies to receive an A-rating for its achievements from independent rating agency, EmpowerDex.
Growth within the Datacentrix Solutions division has been fuelled by significant contract wins and the reinforcement of strong partner relationships through recent awards, including appointment as sole South African member of the elite Microsoft Business Solutions Inner Circle. The company was also named as Microsoft Business Solutions` Partner of the Year for the second year running - the first local Microsoft Business Solutions partner to win this award for two consecutive years.
The Infrastructure division has continued to outperform, within the supply of infrastructure and related maintenance through Datacentrix Services. "We have not only maintained our position as partner of choice to a number of blue-chip customers, but also continued to achieve success in selective outsourcing in services support and maintenance. This is only possible through the highest level of accreditation with technology partners," Morolo says.
"Our continued success in the local marketplace, due largely to our deepening relationships with both customers and partners, tight operational and financial controls and solid, proven business model, makes Datacentrix the ideal long-term strategic partner for both vendors and customers," he concludes.
Datacentrix will not pay an interim dividend, but expects to pay a final dividend in line with the policy announced at the end of the financial year ended 28 February 2005.
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