Datatec more than doubles interim dividend after a 109.5% surge in headline earnings

DATATEC, the global provider of ICT solutions and services, has reported a striking 109.5% increase in headline earnings per share for the six months to August 31 after enhancing profit in its Westcon division and evolving its recurring software and services portfolio.

- EDWARD WEST

This culminated in an interim dividend that more than doubled to 10 US cents from 4 US cents at the same time last year. Datatec's share price let off some steam falling by 0.93% to R40.36 Thursday afternoon, but the price is more than 70% higher than a year ago.

More than 70% of sales now originate from software and services. Although gross invoiced income remained flat at $260.9 million, the Westcon International division experienced a boost, with invoiced income climbing 9.8% to $2.7 billion. This expansion was evident across all operational regions, while gross profit soared by 13.8% to $245.m, benefitting from tax credits and enhanced margins, particularly in the Asia-Pacific market.