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Solid growth for Datacentrix

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Datacentrix Holdings has reported that headline earnings per share (HEPS) increased by 21% to 26.8 cents and earnings per share (EPS) increased 20% to 26.7 cents for the six months ended 31 August. Operating performance (EBITDA) increased by 11% to R73,7-million while cash generated from operations was R32,1-million.

According to the group chairman, Gary Morolo, Datacentrix expects to deliver typically solid organic results on the back of anticipated better performance in the second half of the year. EBITDA margins have improved as demand for value added services has increased.
"The consistent margin performance over the last 10 years has been pleasing, in the context of the industry in which we operate," he says.
The company's Infrastructure and Related Services division continues to be a dominant player in the supply, deployment, maintenance and support of IT infrastructure solutions to enterprise South Africa.
"There has been a slow-down in IT spend in some of our key customers in the first half, leading to lower than expected top line growth for the first six months," says Ahmed Mahomed, CEO. "Nevertheless we have reason to believe that the deals that slipped in the first half will be realised before our financial year end, with several already having been attained.
"We believe that Datacentrix remains on a steady course, continuing to be a sizable player in commodity sales and at the same time experiencing increasing demand from its clients for our value added offerings, giving impetus to our growth up the value chain.
"The sustained expansion of our service offering has enabled us to provide additional services to customers, further enhancing our strategic positioning as a single source service provider. Datacentrix maintains its 'total service' concept, from pre-sales consultation to after-sales support, in order to ensure that it is a cost effective 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," Mahomed adds.
The group will continue to invest in its services capability, to add increasing value to its product portfolio and stand-alone service offering. In terms of its Solutions division, the group's Workflow and Development business unit has experienced great success, winning a number of major projects with blue chip clients, which has resulted in good organic growth for the period.
The Optimisation business unit is also seeing strong demand for Enterprise Content Management (ECM) and archiving solutions, which, despite longer than usual selling cycles, has resulted in new contracts being won recently, positioning the division favorably for the next six months.
From a vendor point of view, it is business as usual, says Morolo. "We have maintained our status as HP's largest partner and have updated our certifications in line with HP's updated accreditation requirements. We are an HP Gold Certified Preferred Partner on all major specialisations, a Microsoft Gold partner and IBM Premier Partner. In addition, we recently qualified as a Cisco Premier partner.
"This level of accreditation, together with the superior level of service provided to customers, reaffirms the real value we add as a trusted partner to both our vendors and customers."
The company has in the past six months strengthened its management team in line with growing customer requirements, appointing Rainer Jeske as the MD of its Technology Solutions division, a sub division of Infrastructure and Related Services.
An interim dividend of 13 cents per share has been declared, which is in line with the current dividend policy of two times HEPS cover.