South Africa's largest IT companies are not only weathering the recession but seem to be well-placed to beat it. Dimension Data is the latest to announce that results for the current year are expected to be good, while the outlook going forward is favourable as well.
Today, the group published its second interim management statement, for the period 1 April 2008 to 18 August 2008.
Dimension Data continued to experience good demand for its IT services and solutions during the period, according to the statement.
Gross margins were stable and costs contained. As a result, the group remains confident that it will deliver a strong financial performance in line with management expectations for the full financial year.
The group also maintained a solid net cash position during the period, reflecting ongoing focus on working capital management.
Despite continuing global economic uncertainty, the outlook for the group remains favourable, supported by good order intake for the period.
ICT industry trends provide an environment where the group should continue to grow and prosper, the statement says.
Dimension Data`s execution and delivery capabilities, its quality client base, global footprint, emerging market exposure and strong supplier relationships are all factors which underpin the group's confidence.