IT infrastructure and solutions provider Datacentrix has released a strong set of results for the six months to end-September, with headline earnings per share up 41%.
Turnover more than doubled to R413.15 million during the period while earnings before interest, taxation, depreciation and amortisation surged by 69%
<B>Salient figures</B>
Datacentrix results for the six months to 30 June 2002.
Year-earlier figures in parentheses, move in square brackets:
Turnover: R413.15m (R255.3m) [+61.8%]
EBITDA: R32.65m (R19.35m) [+68.7%]
Income before tax: R29.96m (R16.75m) [+78.9%]
Attributable earnings: R19.93m (R12.26m) [+62.6%]
HEPS: 11.8c (8.4c) [+40.5%]
NAV per share: 80c (64c)
Tangible NAV per share: 58c (55c)
Current assets: R228.53m (R203.42m)
Current liabilities: R142.61m (R129.28m)
Net cash inflow from operating activities: R48m (R25.21m)
Cash and equivalents: R107.22m (R71.46m)
Executive chairman Gary Morolo says although the local market is still experiencing hard times, the group`s focus on good business fundamentals has ensured a strong balance sheet.
The focus has shielded the group from the global and local slowdown in IT expenditure, he says.
"Our concentration on business critical `must-have` technologies, rather than `nice-to-have` solutions, has been the foundation for our growth, while our high value-add in software and services has also bolstered our growth."
Morolo says the infrastructure division continued to be the largest contributor, aided by its top-rated accreditation and positioning with HP, IBM and Microsoft.
"All areas of the business are growing significantly, although we are seeing longer sales cycles as we become involved in larger, more complex deals.
"However, this factor, as well as the budget constraints being experienced by a number of local firms, has not harmed our business, thanks to an improved pipeline with fewer once-off transactions and stronger relationships both with existing customers and strategic partners."
The solutions business is expected to be a high-growth area going forward, and the group has set up its services division as an independent profit-making entity.
Morolo says Datacentrix`s early focus on black economic empowerment is showing positive results as more organisations insist on proper empowerment credentials.
The empowerment equity stake remains at 49%, while 43% of employees are black and 62% are from the designated category.
"With the significant growth initiatives identified in our infrastructure business and the growth experienced in the solutions and services divisions, Datacentrix has successfully implemented its growth strategy and remains poised to make judicious and opportune acquisitions.
"We are positive that growth will continue in the second half of this financial year."
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