Networking services group Datatec expects interim earnings to be between 15 and 16 US cents per share, a rise of more than 20% from the same period last year.
A Johannesburg Stock Exchange News Service notice today says Datatec had a strong overall financial performance during the six months to 31 August, improving on previously reported interim results. This was driven by strong increases in revenues, improved margins and tightly controlled operating costs.
Datatec is due to release its full interim results on 1 November. It will be the first financial results since its London share debut last week. Although that listing brought in only half of the expected lb29 million in cash the group had hoped for, CEO Jens Montanana remains optimistic it was the right step to further the group`s acquisition strategy.
"Foreign vendors will feel more comfortable with the London shares in lieu of cash," Montanana said at the time.
In the 2005 interim results, Datatec stated the group had increased revenue by 15%, to $1.4 billion, and headline earnings per share had increased to 12 US cents, from 0.1 US cents previously.
For the full 2005 year, Datatec`s revenue bounced up 18%, to $2.98 billion, resulting in a surge in headline earnings per share to 26.91 US cents from 3.59 US cents the year before.
According to Inet-Bridge, Datatec`s share price on the JSE was trading between R29.50 to R29.90 in thin mid-morning trade today. The Inet-Bridge analyst forecasts show the company is expected to deliver earnings per share of 223.7 SA cents for the full 2006/7 financial year and a dividend of 42 SA cents.
Related stories:
Datatec committed to acquisition strategy
Share