Datatec

JP: DTCJ

Market CapZAR5128.2m

Last Close ZAR25.24

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 (IT services); and Analysys Mason (consulting).

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Investment summary

Datatec’s IT services arm, Logicalis, has acquired Siticom, an engineering consultancy based in Germany with specialist expertise in enterprise 5G systems integration, including next-generation public and private networks and internet of things implementation. As well as strengthening Logicalis in Europe, the acquisition immediately makes it one of the few ITC groups with expertise in 5G systems integration. Siticom will form the basis for a European hub for advanced networking integration around 5G and cloud-based network interoperability. Siticom has 130 staff and historic revenues of c US$24m. The consideration was not disclosed.

Y/E Feb
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 4214.4 158.7 79.1 10.59 16.7 2.1
2021A 4109.5 118.6 73.1 6.75 26.3 2.0
2022E 4316.5 163.1 79.1 16.61 10.7 3.7
2023E 4548.5 185.3 101.6 25.19 7.0 3.6
Industry outlook

As the global economy recovers, with robust European and Asian demand, we expect Datatec to continue to benefit from the streamlining of its operations and cost base, with progressive margin improvement at Logicalis and improving profitability at Westcon. Semiconductor supply remains a supply chain concern for the entire technology sector.

Last updated on 26/07/2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 83.9
Forecast gearing ratio (%) 12
Price performance
%
1m
3m
12m
Actual (8.3) (9.9) 5.2
Relative* (10.8) (10.5) (14.0)
52-week high/low ZAR31.5/ZAR20.0
*% relative to local index
Key management
Jens Montanana CEO
Ivan Dittrich Finance Director

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