Datacentrix is still looking for acquisitions to add to its capability in the enterprise software and information management space.
The group yesterday reported a set of results that CEO Ahmed Mahomed says were pleasing, given the current economic environment. In the six months to August, the group reported revenue up to R1.1 billion from R1 billion previously, while headline earnings came in at R47.5 million, an improvement on the R41 million it earned a year previously.
Mahomed says the group wants to add more entities to its base to complement its organic growth, but is finding this difficult as companies are overpriced at the moment. He notes Datacentrix is engaging with a few different entities.
The listed company is looking for deals that are adjacent to its current offerings, says Mahomed, adding this will be in spaces such as analytics, business intelligence, security, information management and enterprise software such as SAP.
Datacentrix ended the period with R134.6 million in cash.
Mahomed notes, given the consolidation in the sector, there will eventually be few companies left, but Datacentrix is bullish and hopes to stick it out.
The group has also been going through a transformation over the past few years as it shifts from being a mainly hardware player to offering infrastructure solutions, with a growing managed service, application and cloud business, adds Mahomed.
Despite the market remaining under margin pressure, Datacentrix's operating margins improved from 5.5% to 6%, which was driven by its shift to higher-value complex solutions revenue and focused cost management.
In addition to seeking deals and transforming, Datacentrix is also keen to move into Africa, although it will take a cautious approach, says Mahomed.
Share
