Datacentrix final results 29 February 2012

Revenue for the year ended 29 February 2012 jumped to R1.8 billion (2010: R1.6 billion). Earnings before interest, taxation, depreciation and amortisation ("EBITDA") lowered to R145.2 million (2010: R150.1 million), operating profit slid to R123.4 million (2010: R124.4 million), while total comprehensive income attributable to ordinary shareholders increased slightly to R90.8 million (2010: R90.2 million). Furthermore, headline earnings per ordinary share grew to 46.9cps (2010: 46.3cps).

In respect of the current year, the directors declared a gross final dividend of 19.53cps, which is a departure from the normal two times headline earnings per share cover.

Market consolidation will continue, attested to by the recent numerous acquisitions by HP and IBM. Consolidation has been driven principally by one or two listed companies. BMI Research forecasts the South African ICT industry to reach around R75 billion over 2012. However, South African businesses are expected to remain cautious when it comes to investments in technology, due to continued global economic uncertainty. The local IT market five year compound annual growth rate ("CAGR") is anticipated to remain within the high single- and low double- digit range.

Datacentrix' transition to a services-led solutions provider is set to continue over the next year. The group is already offering, and has been recognised for its capability to deploy cloud infrastructure, recently winning one of the larger e-mail cloud opportunities in the marketplace. As cloud technology matures, the group will continue to make the necessary investment in both "white label" cloud solutions and building its own cloud infrastructure.

The IT landscape is highly competitive from a skills perspective due to scarcity. Datacentrix has set up a learnership programme aimed at school leavers and those with basic IT qualifications. The group is also seeking out unemployed graduates, with the relevant qualifications to provide permanent employment and to develop specialised skills.

Annual general meeting
It is expected that the annual report will be dispatched to shareholders no later than 18 May 2012. Notice was given that the AGM of the group will be held at the Datacentrix' registered office on Friday, 15 June 2012 at 10:00.

2012-04-17 12:24:51