Datacentrix presents solid results
- 06 April, 2004 16:26
ICT infrastructure and solutions provider, Datacentrix Holdings Ltd., has announced its annual financial results for the year ended Feb. 29.
The company says that revenue has decreased by 1 percent to R764 million (US$119 million), compared to the corresponding period, affecting EBITDA (earnings before interest, taxation, depreciation and goodwill amortized), earnings and headline earnings per share, which are down 2 percent, 16 percent and 10 percent respectively. According to the company, net asset value per share has increased 17 percent to 97 cents, and tangible net asset value per share 27 percent to 81 cents compared to the corresponding period. Cash generated from operations was R28 million, resulting in R131 million cash on hand with no interest-bearing debt.
"The directors of Datacentrix believe that the company has performed satisfactorily in a difficult and challenging environment," says Gary Morolo, executive chairman of Datacentrix. "The performance of the company, its competitive profile, delivery capacity and its prospects have not changed materially; the only difference has been the change in the value of the currency relative to the U.S. dollar between the two reporting periods. Given a constant rand in dollar terms, Datacentrix would have been presenting another pleasing set of results.
"We have always striven for stability from an investment point of view, and will continue to build a strong balance sheet with tight operational and financial controls," he says.
Morolo reports that the company has successfully retained all of its major existing customers and has chalked up a number of significant wins over the year. "A key focus for 2003 was to make inroads into the Johannesburg market. We are now firmly entrenched within this sector, winning over a number of blue-chip customers and gaining larger long-term contracts."
According to the company, its infrastructure division has shown healthy growth and continues to be a strong contender within the ICT infrastructure supply, maintenance and support sector. It is the view of the company that this division has been a great contributor to its consolidated Johannesburg success and has been established as a serious player in the enterprise systems space.
Datacentrix says that it also increased its employment equity profile, escalating its black empowerment profile from 43 percent to 45 percent, with 66 percent of its workforce comprising designated employees.
Other new developments within the group include the decision to pay dividends for the first time. An ordinary dividend of 6.9 cents per share for the year ended 29 February 2004 has been proposed. In line with JSE requirements, the chairman and CEO roles have also been separated, with Gerhard Uys taking up the CEO position and Morolo retaining the title of executive chairman.
The company eagerly awaits the finalization of the ICT Charter, as Morolo believes that Datacentrix's continued focus on internal transformation imperatives should enable the company to easily meet any requirements. "Particular focus is now being placed on improving our empowerment supplier purchases and corporate social investment programs.
"The group's strategic focus remains unchanged and we will continue to look for growth within the Johannesburg market. We are also expecting growth within the government sector and are planning on becoming the pre-eminent player within the enterprise systems space," Morolo says.