Dimension Data Holdings has reported a full-year loss of 2.7 US cents per share before goodwill amortisation and exceptional items, compared with earnings of 2.3 US cents per share for the year to 30 September 2002.
<B>Salient figures</B>
Dimension Data Holdings results for the year to 30 September 2003.
Previous year`s figures in parentheses:
Total turnover: $2.1b ($2.19b)
Operating profit before amortisation and exceptional items: -$14.89m ($40.96m)
Group operating profit: -$397.76m (-$2.54b)
Profit on ordinary activities before tax: -$398.65m (-$2.58b)
Profit for the year: $420.29m (-$2.58b)
EPS before amortisation and exceptionals (US cents): -2.7c (2.3c)
Basic and diluted EPS (US cents): -31.3c (-198.9c)
Current assets: $88.58m ($99.1m)
Cash at bank and in hand: $357.79m ($372.57m)
Net current assets: $395.03m ($342.66m)
Net cash inflow from operating activities: $51.16m ($28.95m)
"The year under review has been characterised by challenging global trading conditions," says executive chairman Jeremy Ord. "Dimension Data has responded by improving our strategic and operational focus, enhancing the management team and delivery capabilities, and further cutting costs while maintaining investment in the evolution of our business model."
He says the challenging economic environment forced the group to look critically at both its skills sets and management capabilities, with significant personnel changes resulting in a broader and stronger management team, an improved skills base and a better ability to sell and deliver services and solutions.
"We have also focused on improving efficiencies in our core Network Integration business in recognition of the fact that products will always form a key part of our solutions offering. This being said, we remain committed to our target to grow our services offering to more than 50% of turnover in the medium-term."
Ord says that after a number of years of pressure on product margins, some pricing stability began to emerge in the second half of the year, although services margins, while still more attractive than product margins, have come under pressure.
Total revenue for the year declined from $2.19 billion to $2.1 billion. The group says the weakness of the US dollar masks a decline in revenues of 16% in constant currency terms over the prior year.
"Over the year we cut costs in constant currency terms across all regions, although due to the fact that we report in US dollars, this is not apparent in our financial results," says Ord. "The SA rand, Australian dollar, euro and sterling foreign exchange rates strengthened against the average US dollar rate by 42%, 21%, 20% and 8% respectively over the year."
The group operating loss improved from $2.54 billion to $397.76 million, while the loss for the year showed an improvement from $2.58 billion to $420.29 million.
Ord says a highlight of the year was the improvement in the balance sheet and cash position, with the group generating operating cash of $51 million. "Our cash position of $358 million at year-end is a competitive advantage of the group."
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