Dimension Data Holdings plc on Wednesday reported basic earnings per share of 1,9 United States cents for the six months ended March after a restated 0,6 cents for the same period a year earlier. On a diluted basis, earnings per share were 1,8 US cents.
Turnover grew by 15,9% to $1,45-billion, while gross profit increased by 10,3% to $299-million and operating profit roe by 33,3% to $37,4-million.
Dimension Data said the growth in revenue reflects a 12,2% increase in the Network Integration line of business and an overall good performance from the Solutions lines of business.
Gross margin was 20,6%, 1,1% lower than for H1 2005, although slightly higher than H2 2005’s 20,5%.
“It is pleasing to note that we are growing our market share specifically in the area of network integration, which is at the centre of the convergence trend,” said Brett Dawson, Dimension Data CEO.
“As a result of this trend we experienced notable growth in our converged communications and security lines of business and fully expect the market trend of the convergence of voice and data on to a single IP [internet protocol] infrastructure to continue, and the demand for our skills and experience to increase. The hard work, commitment and loyalty of our employees have contributed significantly to the pleasing results.”
Africa’s revenue grew by 9,1% with services revenue increasing by 13,3%.
Reported operating profit improved from $21,9-million in the first half of 2005 to $27,9-million, and the operating margin increased from 9,8% to 11,4%. Overall gross margin improved from 30,9% in the first half of 2005 to 32% this period. Gross profit grew by 13,1% for the period.
Commenting on Africa’s financial performance, Allan Cawood, CEO for Dimension Data in Africa, said: “The financial results of the first half build on the positive momentum of last year. We continued to focus on increasing revenue and containing costs to deliver profitable growth. Our focus on delivery and client satisfaction can be seen in our growing and loyal client base.
“It is also important to recognise that the strong financial performance from Africa is a result of the commitment from our highly skilled employees in delivering exceptional client service. This half, we increased our shareholding in both Plessey and Internet Solutions, which has further enhanced our market offering and our ability to deliver improved telecommunications services throughout the continent.”
Looking forward, Dawson commented: “The successful execution of our strategy within our chosen market segments is delivering positive results for the group, and going into the second half we are confident that we will continue the momentum and deliver improved returns to shareholders.” — I-Net Bridge