Datatec said yesterday it expected its earnings to surge in the year to the end of February because of the strength of the technology sector and despite Covid-19-related challenges. Picture: Karen Sandison/African News Agency(ANA)
Datatec said yesterday it expected its earnings to surge in the year to the end of February because of the strength of the technology sector and despite Covid-19-related challenges. Picture: Karen Sandison/African News Agency(ANA)

Datatec expects annual earnings to surge on tech sector strength

By Dineo Faku Time of article published May 14, 2021

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JOHANNESBURG - DATATEC, the Joburg-headquartered information and communications technology firm, said yesterday it expected its earnings to surge in the year to the end of February because of the strength of the technology sector and despite Covid-19-related challenges.

“All of the group’s divisions delivered strong results and operating cash flows, and the group ended the 2021 financial year with enhanced liquidity and significantly reduced net debt,” Datatec said in a trading statement yesterday.

The group incurred once-off Covid-19-related and restructuring costs of $22 million (about R309 million) that were excluded from underlying earnings.

Underlying earnings were likely to range between 13.4 and 13.8 US cents, up between 35 percent and 39 percent on the 9.9 US cents recorded a year earlier. Headline earnings per share were expected to be between 1.6 and 2 US cents, down between 66 percent and 73 percent from 5.9 US cents in 2020.

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