Datatec pays shareholders R1bn in special dividend

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Datatec CEO Jens Montanana.
Datatec CEO Jens Montanana.

Technology group Datatec is set to fork out R1 billion ($70 million) to shareholders in a special dividend for the six months ended August.

The JSE-listed group, which today released its half-year results, says based on its strong financial position, it was elated to pay some of the gains to shareholders.

Datatec CEO Jens Montanana says all the entities in the stable posted a superb performance in the period.

“Datatec's first-half results were supported by excellent operational execution, with all divisions delivering strong top- and bottom-line growth, as the positive impact of increased digitisation on recurring software and services continues.

"Based on the group's healthy financial position and following the repayment of loans by Westcon International put in place at the time of the Synnext transaction, the board is pleased to return the proceeds to shareholders through a $70 million special dividend.”

Additionally, he says, Datatec is progressing with several options and initiatives under review to unlock and maximise further shareholder value.

In a statement today, Datatec says its divisions continue to focus on the products and services required to support the digitisation trend prevailing in the industry, as demand for remote IT networking accelerated during the pandemic.

“Their businesses have already repositioned away from many forms of traditional hardware, to software and services with growing annuity revenue.”

It says its entities in emerging markets, such as Brazil and South Africa, were positively impacted by local currencies strengthening in H1 FY22 against the US dollar, which increased their dollar-reported contribution to the results.

For the six months, Logicalis, the largest contributor to the group in terms of profitability, increased revenue by 18.7% to $822.9 million, compared to $693.1 million restated revenue for H1 FY21.

EBITDA increased by 8% to $46.5 million (H1 FY21: $43 million).

According to Datatec, global trading uncertainties are expected to persist for some time, but Logicalis is confident it is positioned to continue to respond to changing market needs as society emerges from COVID-19 disruptions.

“Technology is set to play an even more integral role in the 'next normal' and Logicalis is ready to facilitate these fundamental changes.”

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