Datatec declared an interim dividend of 250 cents a share, up 42.9%, after underlying earnings per share rose 56.5% to 30.2 US cents in the six months to 31 August.
The group, which is listed on the JSE and reports in US dollars, said gross invoiced income rose 18.0% to US$4.8 billion. Revenue was US$2.02 billion, up 13.9% on a restated figure for the same period of 2025. Gross profit rose 5.8% to US$511.2 million. Excluding US$15.5 million of indirect tax credits booked in the earlier period, gross profit rose 9.3%.
Headline earnings per share, the measure the JSE uses for listed companies, rose only 1.4% to 22.3 US cents from 22.0 US cents. Adjusted EBITDA, which Datatec calculates before share-based payments, restructuring and deal costs, rose 16.6% to US$150.7 million. Operating profit fell 11.4% to US$95.5 million.
“The Group’s strong financial results reflect the continued excellent performance at Westcon,” chief executive Jens Montanana said in the announcement, which also reported “weak operating results in Logicalis Latin America”.
Westcon International, the distribution arm, grew revenue 22.5% to US$1.13 billion, but gross profit rose 4.4% because of what Datatec called several large, low-margin deals. Logicalis International, the services arm, lifted adjusted EBITDA 36.3% to US$71.4 million. Logicalis Latin America made an adjusted EBITDA loss of US$0.5 million, against a profit of US$11.8 million a year earlier, as lower order intake followed its move to depend less on telecoms customers.
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Source: Datatec interim results for the six months ended 31 August 2026. Chart: Rand Desk
The profit line in Latin America was helped by US$17.1 million of interest on tax credits that a Brazilian court cleared in March 2026. The group’s tax rate fell to 23.7% from 31.5%.
The results include the Westcon refinancing completed on 4 August 2026. General Atlantic provided a US$375.0 million, six-year term loan at 9% and paid US$25.0 million for a 5% interest in Westcon’s holding company. Datatec used the proceeds to declare a special dividend of 2,900 cents a share, worth US$438.0 million or R7.1 billion in total.
Shareholders elected to take R2.3 billion of the special dividend in cash and R4.8 billion in new shares. Datatec paid the cash and issued 94,324,733 shares on 19 October. Net debt stood at US$553.1 million at 31 August, against US$46.7 million at the end of February, mostly because the special dividend was still unpaid.
Other JSE-listed companies reporting this month include Boxer and Clicks.
On the outlook, Datatec said demand for AI infrastructure supports growth in hardware and software. It warned that second-half results will reflect the Westcon minority investment and the extra shares issued for the special dividend.
The interim dividend, in cash with a scrip alternative, goes to shareholders on the register on Friday 4 December 2026. A circular with the election form is due on 5 November, and the scrip ratio will be announced on 24 November.
