The Group has reported H1 18 EBITDA of US$7.7m, down from the US$24.4m reported in the same period last year.
Companies: Datatec Limited
Information and communications technology company Datatec (LON: DTC) has released a disappointing set of interims today which show a major slump in H1 18 figures.
The Group reported H1 18 Revenues of US$1.8bn, down from the US$2bn reported in H1 17 and EBITDA of US$7.7m, well below the US$24.4m reported in the same period last year.
Underlying EPS in H1 18 also slumped to 1.4 US cents compared to the 12.5 US cents in H1 17.
As a result of the results shares in the Group fell over 7% in early morning trading on Monday.
The Group also made two disposals totalling US$872m with the plan to return US$350m of the cash to its shareholders.
Commenting on the results and recent disposals, Group CEO Jens Montanana said:
"Although the first half headline results were disappointing, we have generated exceptional value through the successful sale of our Westcon Americas business and recently the smaller disposal of the non-core Logicalis SMC business.
In the near term, we plan to return US$350 million of cash to shareholders in a structured way to give them maximum flexibility and in due course return to shareholders any deferred cash consideration from the sale of Westcon Americas."
The announcement also confirmed the AIM listing of Datatec shares will be cancelled on December 8...
"The AIM listing has not had the desired effect of diversifying Datatec's investor base and trading of the shares on AIM has dwindled to negligible volumes."
DTE trades at a forecast price to earnings multiple of 9, half the industry median of 18. It has a current Market Cap of £6889m and a 12-month forecast dividend yield of 3.6%.
