/ 18 November 2010

Didata says ‘cheers’ on a high note

Dimension Data is ending its 23-year listing on the Johannesburg Securities Exchange (JSE) on a high note.

The IT group, which is being acquired by Japan’s Nippon Telegraph and Telephone (NTT) Corp, reported a 9,9% increase in sales in constant currency terms in the 2010 financial year to September.

Currency tailwinds meant revenue grew 19,4% to $4,74-billion.

It’s the last set of results that Didata will report as a listed entity. Trading has already been suspended on the JSE, and the counter will stop trading in London in the next few weeks.

In the financial year, Didata recorded an 8,2% increase in operating profit, bringing it to $237,8-million. Operating margin reached 5%, from 4,9% a year ago.

“Our growth rates are greater than the market, implying market share gains in nearly all of our areas of focus,” says Didata CEO Brett Dawson.

Let down by Plessey
The group’s core business units in systems integration enjoyed a solid performance around the world. However, its telecommunications segment was hit by yet another poor performance by Plessey.

Plessey revenues declined 43,2%. However, Dawson said the second half of the year is showing some improvements at Plessey.

Internet Solutions performed a lot better than Plessey, turning in a 10,5% increase in sales.

The strong results will come as welcome news to NTT, which is acquiring the group in a R24-billion all-cash deal.

Dawson says he expects the group to continue on its growth path.

“We believe that the network is the core platform for all forms of communications and IT. Technologies and services which are reliant on the network will only grow over time and we are well-placed to continue to exploit this opportunity,” he said. —- TechCentral