Datatec expects full-year earnings per share to be up between 30% and 40%, the Johannesburg- and London-listed IT group said this morning.
This is despite an issue of 7.2 million additional shares to facilitate its UK listing.
The trading update notes the group's financial performance improved for the fourth successive annual reporting period. This is off the back of a strong performance in the second half of the last financial year.
With revenue predominantly sourced from outside SA, Datatec last year concluded a secondary listing on London's Alternative Investment Market. The listing saw the company issue an additional 7.2 million shares.
Despite the dilution effect of this share issue, Datatec expects headline earnings per share and earnings per share for the year ended 28 February 2007 to be between 35 and 38 US cents. This compares to its 2006 earnings of 26.91 US cents and 26.54 US cents respectively.
Group revenue, it says, will increase by 17%, to almost $3.5 billion. This includes 10% revenue growth, to over $2.5 billion, at Westcon; 40% revenue growth, to over $750 million, from Logicalis; and flat revenue contribution from Analysis Mason.
Datatec says earnings before income tax depreciation and amortisation will be approximately $117 million, significantly up on last year's $85 million.
Datatec points to the solid progress in its acquisition strategy in the second half of the year. It says newly-acquired companies NOXS and CSF would improve its vendor and technology mix, driving a greater services contribution and developing the recurring revenue base.
The companies will also contribute to the ongoing margin improvement expected in the operating divisions as a result of greater scale and efficiency, it adds.
Datatec plans to announce its preliminary results for the year ended 28 February 2007 on 16 May.
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