Datacentrix grew its gross revenues by 12% to R1,5-billion for the year ended 28 February 2009, with EBITDA up 5% to R165,5-million.
Both headline earnings per share and basic earnings per share increased by 18% to 61.5 cents. Strong operating cash flows were generated of R132,6-million resulting in R232,8-million cash on hand, with no interest-bearing debt.
Tangible net asset value improved by 24% to 175,4 cents. In addition, EBITDA margins were at a healthy 10% in an increasingly competitive environment.
"Our 2009 financial year-end results, though short of our own expectations, are positive and commendable in a year that has undoubtedly been tough for most companies, including those within the IT sector," says Gary Morolo, chairman of Datacentrix. "We continue to have strong cash generation and a healthy balance sheet. It is a testament to Datacentrix' tenacity, discipline and proven business model that we have shown growth in an environment that began to turn negative with the explosion of the sub-prime bubble in 2007. Despite this downturn, Datacentrix is bigger and stronger than in the past."
Ahmed Mahomed, CEO of Datacentrix, comments: "The Infrastructure and Managed Services division has had a positive but challenging year, with public sector maintaining healthy growth. Encouraging performances were noted in new target growth areas, including the Managed Print Services, Security, Resourcing and Microsoft Software and Services businesses."
According to Mahomed, the company has invested in enhancing its services capability. The investment in improved operational capacity of the Infrastructure and Managed Services division is in support of its infrastructure solutions portfolio and an ever increasing client footprint.
The Business Solutions division experienced a difficult year not only because of current market conditions, but also as a result of some vendors changing their route to market in the Archiving and Enterprise Content Management space. This has necessitated a repositioning of this business.
On the contrary, the Business Process Management business has had a robust performance in the year under review.
The group believes that its loyal client base can be credited to its strong value proposition, execution capability, expertise and ability to integrate offerings across all lines of business. In the context of the current economic slowdown, the company maintains that organisations will focus on efficiencies and driving down costs, including IT outlay, to preserve bottom lines and that Datacentrix is well positioned to assist in this regard.
"We believe that future growth for the Datacentrix group will be principally organic, supplemented by selective acquisition of pockets of excellence in identified synergistic growth areas. The company will continue with its current strategy of growing business within existing clients, by extending its newer offerings into this base.
"The current climate has the potential to stimulate consolidation in the market, offering opportunities to access new clients in the commercial space," Mahomed adds.