Datatec

Overview
Price performance
Financials
Research
Thematics

Datatec is a South Africa-listed multinational ICT business, serving clients globally, predominantly in the networking and telecoms sectors. The group operates through three main divisions: Westcon International (distribution); Logicalis International (IT services); and Logicalis LatAm (IT services in Latin America).

Datatec has seen strong growth globally, with elevated demand for networking, cybersecurity and cloud infrastructure. Amid continuing uncertainties, there are signs that global growth is slowing but we expect established technology trends to persist.

Latest Insights

TMT |
Update

25.06.24

Datatec — Positive outlook for FY25

TMT |
Flash note

28.05.24

Datatec — Underlying earnings more than tripled in FY24

TMT |
Flash note

02.05.24

Datatec — FY24 underlying EPS more than doubles y-o-y

TMT |
Flash note

27.03.24

Datatec — FY24 revenue growth of 5.8%

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Sector

TMT

Equity Analyst

Katherine Thompson

Director

Key Management

Ivan Dittrich

Finance Director
Jens Montanana

CEO

Balance Sheet

Forecast net debt (US$m)

206.8

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	1.6	0.0	(3.4)
Relative	1.4	(7.2)	(9.4)
52 week high/low	ZAR41.6/ZAR33.6

Financials

Datatec reported 6% revenue growth in FY24, with the backlog normalising after a period of tightness in the supply chain. Strong performances from Westcon and Logicalis International were partially offset by weaker profitability in Logicalis Latin America, resulting in flat adjusted EBITDA margins year-on-year. Management confirmed that the group continues to benefit from secular technology growth trends, including strong demand for cybersecurity and hybrid working, and the adoption of generative artificial intelligence (GenAI). Management expects improved financial performance from all divisions in FY25; we forecast year-on-year growth in underlying EPS of 26%.