Reflecting a return to positive bottom-line profitability, IT group Dimension Data plc (Didata) on Wednesday reported basic earnings per share of 1,3 United States cents for the year to the end of September after a loss of 2,8 US cents the previous year.
However, adjusted earnings per share amounted to 1,4 US cents compared with 0,9 US cents previously.
This was achieved on the back of a 15,2% growth in group revenues from $2,4-billion to $2,7-billion for the 12 months, with a 7,7% increase in the Network Integration line of business and an excellent performance from Didata’s Solutions line of business, where revenues increased by 41,9% on 2004.
Group operating profit more than doubled from $25,7-million to $61,7-million, reflecting the group’s operational leverage. The group’s operating margin also more than doubled from 1,1% to 2,3%.
The group said that during the year it gained market share in many of the key markets in which it operates and strengthened its global Solutions offering, which was reflected in much-improved operating returns. Solutions now accounts for 28% of the group’s revenue — up from 23% hitherto.
“Our revenue growth has been driven by our successful execution of our strategy of expanding aggressively into our chosen market segments, reflected by our six lines of business.”
The group said its focus for the current year is on ensuring excellent service to its clients and improving the depth and breadth of its market offerings.
“While over the past few years we have engaged in exiting some non-core assets, this year we have undertaken some measured acquisition activity to extend our capabilities across our lines of business and consolidate our position as a leading global IT infrastructure solution provider.
“In December 2004, we acquired Euricom, a Microsoft-focused consultancy business in Belgium. In August 2005, we acquired an additional 20% shareholding in Internet Solutions, which increased our holding in this South African internet service provider to 80% (effective 77,91%), and in September 2005, we acquired Bellerephon, an Australian-based provider of Microsoft management and infrastructure solutions,” the group said.
Datacraft Asia reported a robust 25,9% growth in revenue from $456-million and a 153% increase in operating profit to $17,5-million, while Australia’s revenues grew by 15,5%. Revenues in the United Kingdom grew by 13,9%. The US also recorded a highly satisfactory improvement on the prior year, with revenues up 22,6%. — I-Net Bridge