Dimension Data Holdings has reported strong results for the six months to end-March and its chairman and CEO, Jeremy Ord, sees no reason for a slowdown in the second half.
He says the group`s London listing is still on track, although delays in receiving approval from the finance ministry have been frustrating. The Reserve Bank has approved the move, but the ministry wanted clarification on one point.
DiData has already lost out as a result of the delay. It wanted to acquire a US company which would have made a perfect fit with its strategy, but the company was not interested in emerging market shares or South African rands.
Ord is confident the listing will go ahead in the third quarter, and he adds that DiData intends to raise substantial cash to fund acquisitions.
Turnover for the six months increased 71% to R4.6 billion, and financial director Malcolm Rutherford says that organic revenue growth was 55%.
The group attributes the turnover growth to increasing demand for its e-commerce solutions - network and interactive integration service capabilities.
Operating income rose 85% to R451.6 million. Ord says operating margins, traditionally lower at the interim stage than at the year-end due to the uneven spread of overhead expenditure, benefited from a continuing swing in revenue mix towards higher margin areas.
Attributable earnings grew 81% to R320.7 million, while headline earnings increased 72% to R305.5 million. Headline earnings per share rose 50% to 40.7c.
The weighted number of shares in issue was about 97.7 million higher than last year as a result of funding acquisitions.
An analyst says the results are very much in line with market expectations.
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