Edison Investment Research - Datatec Ltd. (10BN) Datatec - Underlying earnings more than tripled in FY24

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Edison Investment Research

Richard Williamson

Datatec - Underlying earnings more than tripled in FY24

Datatec reported FY24 revenue growth of 6%, with a strong performance from Westcon, a good performance in Logicalis International masked by a higher level of net revenue software sales and a mixed performance in Logicalis Latin America. Group gross profit grew 16% y-o-y and adjusted EBITDA grew 7%, resulting in a flat adjusted EBITDA margin of 3.5%. Underlying EPS of 20.2c more than tripled versus the prior year and good control of working capital resulted in year-end net debt of $123m. The company announced a dividend of ZAR1.3/US$0.07. Despite the difficult political and economic environment, management expects to see improved performances in each business in FY25 and continues to focus on unlocking shareholder value as part of its ongoing strategic review.

28/05/2024 1 EN

Underlying

Datatec Ltd.

Datatec is an international information and communications technology (ICT) business with operations in over 60 countries across North America, Latin America, Europe, Africa, Middle East and Asia-Pacific. Co.'s segmental include: Westcon, which is engaged in the distribution of networking, security, and unified communications products and data center solutions; Logicalis, which is engaged in ICT infrastructure solutions and services; Consulting Services, which is engaged in strategic and technical consulting; Corporate, which is comprised of head office companies including Datatec Financial Services, a new capital/leasing business under development and consolidation adjustments.

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ZAE000017745 Johannesburg Stock Exchange South Africa

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Richard Williamson

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Datatec - Operational focus drives H125 profit growth

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Datatec - Underlying earnings more than tripled in FY24

Datatec - Operational focus drives H125 profit growth

Datatec - Better profitability across the board

Datatec - Encouraging H1 across all divisions

Games Workshop Group - A notable acceleration in Q225

Altron - Further margin expansion in H125

Sayona Mining - Catching up with majors

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