Datatec has reported revenue of $5,2-billion for the year ended 28 February 2023.
Group combined revenue was up by 12% on the $4,6-billion revenue recorded in FY22. Group continuing revenue was $5,1-billion in FY23, up by 13,1% compared to the $4,5-billion revenue recorded in FY22. In constant currency, group continuing revenue increased by 20,3%.
The group’s continuing gross margin in FY23 was 14,5% (FY22: 16,1%). Continuing gross profit was $744,5-million (FY22: $729,8-million).
Overall continuing operating costs were $646,2-million (FY22: $586,3-million). Restructuring costs of $15,2-million were included in FY23 relating to fundamental reorganisations in Logicalis International and Logicalis Latin America. There were no restructuring costs in FY22.
Continuing EBITDA was $98,3-million (FY22: $143,4-million) and continuing EBITDA margin was 1,9% (FY22: 3,2%). Continuing adjusted EBITDA in FY23 was $180,2-million (FY22: $158,9-million) and continuing adjusted EBITDA margin was 3,5% (FY22: 3,5%).
Continuing depreciation and amortisation decreased US$68.2 million (FY22: US$68.5 million) and continuing operating profit
was US$18.5million (FY22: US$75.0 million).
The group reported good performance from Westcon International and Logicalis Internation, along with the turnaround of Logicalis Latin America. A special dividend of R2,7-billion was paid on the successful sale of Analysys Mason, and an FY23 final dividend of R439-million based on a UEPS of 29,5 US cents.
Jens Montanana, CEO of Datatec, comments: “The group delivered a strong operational performance during FY23 benefiting from continuing trends in networking and cyber security.
“Westcon International delivered another excellent financial performance. The significant performance improvements in recent years have driven an increased valuation of the division resulting in a high once-off accounting charge for FY23 relating to its share-based remuneration plan which materially impacted all of the earnings metrics.
“Logicalis International’s results were solid and Logicalis Latin America had a much improved second half, with improvement of its supply chain.”
He adds that, during the year, Datatec successfully concluded the disposal of Analysys Mason and unlocked value for shareholders in line with the ongoing strategic review process. “A special dividend of R2,7-billion was distributed in addition to which we are now declaring a final ordinary dividend of R439-million for FY23.
“We continue to see consistent demand for our technology solutions and services across the world. With supply chain issues abating and backlogs reducing, our operations remain well-positioned in their markets.”