International ICT company Datatec expects its full-year earnings to be as much as 83% higher thanks to a strong performance from its Westcon International and Logicalis International businesses.
The group, which has operations in more than 50 countries, said on Wednesday that its headline earnings per share (Heps) for the year ended February are expected to be between 25.0 and 26.0 US cents, 76.1%-83.1% higher than a year ago.
Underlying earnings per share, which excludes certain items, is expected to be between 30c and 31c, being 75.4%-81.3% higher than before.
The group said in October last year that after a review of peer reporting and to more closely align the definition of underlying earnings per share to the group’s adjusted earnings before tax, depreciation and amortisation metric, it decided not to exclude unrealised foreign exchange gains or losses from underlying earnings from the 2025 financial year onwards.
In accordance with the decision, the comparative figure for underlying EPS for financial year 2024 was recalculated.
In April Datatec announced it had been admitted to the OTCQX trading platform in the US to broaden international investor access.
The OTCQX Market is a platform for companies listed on a qualified international exchange to provide transparent trading to US investors using a dollar-quoted share price. It enables companies to disseminate their home market reporting to make their information available in the US.
Established in 1986, the company, one of the JSE’s largest ICT services firms, operates predominantly from two main divisions, Logicalis and Westcon International, the latter distributing security and networking technology products.
In March the group said it had built on the strong operational performance reported for the first half of its financial year, and continued to benefit from demand for its technology solutions and services, especially in cybersecurity and hybrid cloud infrastructure.
It said at the time it expected full-year gross profit to be about 6% higher at $910m. Westcon International’s profit was expected to be 9% higher at $441m, while that of Logicalis International was expected to rise 5% to $357m. Logicalis Latin America’s profit was expected to be 12% lower at $104m.
The group will release its results on May 27.
With Mudiwa Gavaza
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