Datatec has reported improved operational execution across all divisions in its audited provisional results for the year ended 28 February 2019.
Group revenue was $4,33-billion, up 104%; EBIDTA was $86,8-billion; and underlying earnings per share were 6.6 US cents. In addition, the Westcon International turnaround objectives were achieved, together with a share repurchase of $50,8-million.
Jens Montanana, chief executive of Datatec, comments: “The Group delivered on the commitments set in the prior year, resulting in a much improved financial and operational performance across all divisions.
“Logicalis produced strong results despite emerging market currency headwinds, especially in its key Latin America region.
“Westcon International’s recovery is now established, having met the principal objectives around shared services and central cost reductions, with further improvements expected.
“Building on the successful turnaround of FY19, we are confident that our operations are well positioned to improve their performances further and support our Group strategy.”
Logicalis is the largest profit contributor to the Group. The division also has the widest geographical exposure and Datatec intends to continue to develop and grow Logicalis globally, through organic and acquisition activities.
In FY19, Logicalis delivered a strong performance while executing on its strategy. Revenue grew by 11,3% and EBITDA by 8,4% in relation to the financial year ended 28 February 2018.
Westcon International is 90% owned by Datatec and 10% by Synnex. In line with the commitment made at the beginning of the year, the division has returned to EBITDA profitability and the central cost base has been reduced. Further central cost reduction targets previously published are expected to be met in FY20.
The ERP system is now operating effectively after a long and disruptive multi-year implementation process. A full business process outsourcing reversal was completed with in-house shared service centres established in the Philippines and South Africa.
The earn-out payment relating to the disposal of Westcon Americas to Synnex has not yet been determined and the parties are currently engaged in an arbitration process. Datatec expects that the ruling by the arbitrator will be issued shortly and will update shareholders accordingly.
Group revenues were $4,33-billion in FY19, up 10,4% on the $3,92-billion revenues recorded in FY18. EBITDA for FY19 was $86,8-million, more than three times higher than the previous year.
Underlying earnings per share was 6.6 US cents in FY19 compared to an underlying loss per share of 17.2 US cents from continuing operations for FY18.