Last close As at 05/08/2026
ZAR88.30
▲ −0.20 (−0.23%)
Market capitalisation
ZAR21,528m
Research: TMT
In its H124 trading update, Datatec noted that all divisions reported improved performance versus H123. Westcon’s performance was described as excellent, with a strong performance from Logicalis International and a much-improved performance from Logicalis Latin America, although macroeconomic pressures remain in the region. The company continues to see good demand for its solutions and services and is actively managing supply chain challenges to service customers. We maintain our forecasts pending interim results due on 23 October.
Datatec |
Sustained demand in H124 |
H124 trading update |
Software & comp services |
5 October 2023 |
Share price performance
Business description
Analyst
Datatec is a research client of Edison Investment Research Limited |
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In its H124 trading update, Datatec noted that all divisions reported improved performance versus H123. Westcon’s performance was described as excellent, with a strong performance from Logicalis International and a much-improved performance from Logicalis Latin America, although macroeconomic pressures remain in the region. The company continues to see good demand for its solutions and services and is actively managing supply chain challenges to service customers. We maintain our forecasts pending interim results due on 23 October.
Year |
Revenue |
PBT* |
Diluted EPS* |
DPS |
P/E |
Yield |
02/22 |
4,546 |
69.1 |
14.2 |
39.3 |
12.4 |
22.3 |
02/23 |
5,143 |
86.7 |
24.1 |
77.7 |
7.3 |
44.0 |
02/24e |
5,499 |
89.6 |
21.5 |
7.0 |
8.2 |
3.9 |
02/25e |
5,761 |
113.0 |
27.6 |
8.9 |
6.4 |
5.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
As Datatec expects to report financial results for H124 that differ by at least 20% from results reported for H123, it has provided a trading update in advance of its interim results on 23 October. For H124, the company expects to report EPS of 6.1–6.5 cents, 22% to 30% higher than the 5.0 cents reported in H123. Headline EPS is expected to be 6.1–6.5 cents, 29.8% to 38.3% higher than the 4.7 cents reported in H123. Underlying EPS (which excludes acquisition-related costs, fair value adjustments, amortisation and impairments; unrealised FX movements; restructuring costs; one-off tax items affecting EBITDA; and costs relating to corporate actions) is expected to be 9.4–9.8 cents, more than 100% higher than the 3.6 cents reported in H123.
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Research: Industrials
Smiths News’ recent trading update highlights continued growth in adjusted operating profit, which is anticipated to be at least in line with market expectations of £38.3m (Edison: £38.1m). This represents a marginal increase of 0.5% year-on-year, despite the substantial inflationary impacts seen in the past two years. We expect additional publisher contract renewals to be secured in the next year, which should further bolster the company’s cash-generative business model and underpin the sustainability of the business in the long term. Our forecasts are unchanged, as is our valuation of 89p/share, which represents substantial upside.