Datatec rises on predicted surge in profits

DURBAN – Datatec’s share price leapt by more than 45percent on the JSE on Friday after the information and communications technology (ICT) group said it expected all its divisions to report a surge in profits for the year to the end of February.

The group said in a trading update that it was in the process of finalising its results for the year to the end of February, and it had achieved a solid financial performance in all of its divisions.

“The turnaround in Westcon International continued with a substantial improvement in profitability in the financial year to end February 2019. Logicalis is also expected to produce a strong result, especially in its Latin America region. Analysys Mason had another growth year, with much improved profitability,” the group said.

The share price responded positively to the trading update and surged to R26.80 a share, up from Thursday’s closing price of R18.25. It closed at R26 on Friday.

Last year, Westcon International benefited from the turnaround strategy as it reported earnings before interest, tax, depreciation and amortisation (Ebitda) of $5.6 million (R98.40m), recovering from a loss of $48.1m a year earlier, while Logicalis increased its Ebitda by 8.4percent to $93.4m.

Source: iol.co.za