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Datacentrix delivers strong interim performance

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Datacentrix Holdings Limited has announced healthy interim financial results for the six months ended 31 August 2007. Earnings before interest, taxation, depreciation and amortisation (EBITDA) is up 33% to R66,4-million, headline earnings per share (HEPS) increased 53% to 22.2 cents per share and basic earnings per share (EPS) grew 57% to 22.2 cents per share. Cash on hand is R207-million at 31 August 2007 with R81-million generated from operations.

According to Datacentrix chairman, Gary Morolo, the group showed its customary solid performance for the period, demonstrating that its business model is maintaining its currency.
"Datacentrix' offerings are moving up the value chain – with high value, high margin business increasing faster than the commoditised side, something that is clearly reflected in the bottom line," he says.
The group strengthened its enterprise offerings, looking specifically at Enterprise Systems Management (ESM) as well as identifying great prospects within the high-end, specialised area of Security.
"In addition, Datacentrix is placing a greater focus on skills resourcing, with the recent official launch of its Resourcing business unit.
"Once again, the group received the most prestigious awards at HP's Partner-of-the-year event – including 'Partner with the highest consistent revenue across all products', the 'Highest consistent growth for the Storage Works Division' and 'Channel partner of the year' for both the Imaging and Printing and Technology Solutions groups – reaffirming our credentials as a trusted partner to both our vendors and customers."
According to Morolo, the group experienced strong performance in particular in the enterprise systems, selective outsourcing and commercial segment of the market.
"The continued expansion of our service offerings has enabled us to provide more services to customers, further enhancing our strategic value to them as a single source service provider. This commitment ensures that Datacentrix is a highly cost effective and ideal partner for the supply, installation and maintenance of equipment over its entire life-cycle, providing customers with the ability to focus their resources on their core business."
The Solutions division is steady on a course of focusing on growth opportunities, with the Enterprise Resource Planning (ERP) business unit consolidating its performance by ensuring that the fundamentals are in place and that projects are delivered in accordance with client expectations. The sales capacity has been enhanced during the period to focus on sales growth with a sound service delivery foundation.
The Workflow and Development business unit has won major projects in the areas of workflow, business intelligence and data-mining, while the Optimisation business unit, serving the Enterprise Content Management (ECM) and archiving areas, has also performed creditably. The group's regional offices continue to perform strongly and its focus on the Johannesburg market has realised its potential.
"We would like to welcome two new Holdings executive committee members, Kelebone Tekateka and Vernon Tutton, who will be Infrastructure (Pta) and Services Managing Directors respectively."
The group maintains its dividend policy of two times HEPS cover with an interim dividend payment of 11 cents.
"The market has not changed much since we last reported. We remain positive that Datacentrix will strive to maintain its dominant position within its market space," says Morolo.