JSE-listed IT multinational Datatec Group has more than doubled its interim dividend after reporting a 109.5% year-on-year jump in headline earnings per share in the six months to end-August 2025.
The group, which owns Westcon and Logicalis, declared a dividend of R1.75/share, up 133.3% compared to the dividend of 75c in the same period last year.
In fact, Datatec’s latest numbers paint a picture of a business in rude health – net debt halved year on year, while Ebitda, a measure of operating profit, climbed by 35.6% in dollar terms. Revenue growth was more muted at 2.9%.
Datatec attributed the strong gains to:
- Continued margin expansion and strong profit growth in Westcon, with a growing recurring software and services mix;
- Strong operating leverage in Logicalis International driving “excellent performance”;
- Considerably improved financial performance in Latin America;
- AI, which is driving a “generational change in infrastructure required for data centres, networks and cybersecurity”;
- Modernisation of IT infrastructure to support hybrid-cloud driving managed services and new generation of product;
- Software-as-a-service sales; and
- Vendors increasingly relying on channels and partners to address complex solutions, digital integration and ongoing customer support.
Datatec CEO Jens Montanana described the results as “another period of outstanding operational execution and financial performance”.
“Continued margin expansion and strong operating leverage supported further improvement in the quality of Datatec’s earnings. The strong profit improvement and enhanced dividend payout ratio led to a significant increase in our interim dividend,” he said.
Increased margins
Datatec said current trading conditions are marked by a higher proportion of software and services at increased margins, along with rapidly growing IT complexity that is driving strong demand for its specialised services and expertise.
“AI-ready IT and network infrastructure will become essential for most businesses. For our industry, this will also drive faster networking, distributed data centres, more local computing and increased cyber threats, all of which should continue to benefit the group.”
Read: Datatec still focused on closing valuation gap
Datatec, whose share price has jumped 44% year to date and by 68% over the past 12 months, said it expects improved full-year financial performance across all its divisions. Its year-end is 28 February 2026. – © 2025 NewsCentral Media
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