JSE-listed global technology firm Datatec has cut its dividend after reporting a decline in profit for the year ended February 2024. But the underlying business appears to be performing well.
The dividend has been cut from R1.95/share for the 2023 financial year to R1.30/share now.
Stripping out a range of once-off effects, underlying earnings per share (EPS) climbed by 231% to approximately US$0.20/share. With the once-offs included, however, earnings per share fell by 44.7%.
Underlying EPS excludes impairments of goodwill and intangible assets; profit or loss on sale of investments and assets; amortisation of acquired intangible assets; unrealised foreign exchange movements; acquisition-related adjustments; fair-value movements on acquisition-related financial instruments; restructuring costs relating to fundamental reorganisations; once-off tax items; costs relating to acquisitions; integration and corporate actions; and related taxes.
CEO Jens Montanana said the group "maintained a strong operational performance in the second half of the year to deliver a solid full-year result as global demand continues for our technology solutions and services".
"Operationally, Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24. Logicalis International also performed well; however, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance."
Westcon, LogicalisGroup revenue rose by 6.1% to reach $5.46-billion (R100.3-billion), while gross profit rose 15.8% to reach $862.2-million.
' READ: Investors are turning bullish on South Africa"We are optimistic about FY25 and remain focused on unlocking value for shareholders," Montanana said of the outlook for the current financial year.
Datatecs shares were trading 0.5% lower on Monday in Johannesburg following publication of its 2024 financial results. Over the past year, to Fridays market close, they are up 2.3%. Year to date, they have lost 7.7% of their value. - © 2024 NewsCentral Media
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