Datatec expects strong annual results ahead.
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Shares in Datatec, the JSE-listed international information and communications technology company, rose 2.38% to close at R53.76 on Thursday after it said in a trading update for its financial year ended February 28 (FY25) that it expects its gross profit to surge 6%.
Datatec provides a range of technology solutions and services through its three core divisions: Westcon International, Logicalis International, and Logicalis Latin America.
It said, "The Group built on the strong operational performance reported for the first half of FY25 and continued to benefit from demand for the Group’s technology solutions and services, especially in the areas of cyber security and hybrid cloud infrastructure."
The group’s gross profit is projected to reach $910 million (R16.6 billion). This follows a strong first half, as reported in the results for the six months ended August 31, 2024, published on October 24, 2024.
Reported revenues remain affected by a growing shift to net accounting for software and services, which the board states impacts comparability with prior periods. Gross profit is, therefore, seen as a more accurate gauge of underlying performance, the company explained.
Datatec expects divisional gross profits as follows for the reporting period: Westcon International at $441m, up 9%; Logicalis International at $357m, up 5%; Logicalis Latin America at $104m, down 12%; and Corporate and Management Consulting at $8m.
Westcon International and Logicalis International posted strong results in the second half of FY25, while Logicalis Latin America, despite a gross profit decline, achieved a better overall financial performance than the previous year.
The company said it plans to publish its annual results on or about May 27.
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