Our opinion on the current state of DATATEC(DTC)Datatec (DTC) is an international IT and telecommunications company operating in more than fifty countries. It operates in the United States, South America, Europe, Africa, the Middle East, and Asia. Its business is divided into three main divisions: technology distribution through Westcon International, integration and managed services through Logicalis, and consulting and financial services through Datatec Financial Services and Analysys Mason. The CEO, Jens Montanana, is a 10% shareholder.
On 3rd September 2019, Logicalis announced that it had purchased 70% of Cilnet, a Cisco systems integrator and services management company in Portugal. This acquisition expands Datatec's capabilities on the Iberian Peninsula. Additionally, it acquired Orange Networks in Germany. The company continues to grow by making "bolt-on" acquisitions, including Stelacon in Sweden for $2.6m, Nexia in Norway, and Mars Technologies and Clarotech in South Africa. On 1st June 2021, the company announced the acquisition of Siticom, a 5G company operating in Germany.
In its results for the year to 29th February 2024, the company reported revenue up 6.1% and headline earnings per share (HEPS) of 14.2c (US) compared with a loss of 9.3c in the previous period. The company said, "Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24. Logicalis International also performed well; however, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance."
Technically, the share fell during the COVID-19 pandemic to around 2067c but then rallied to around 4119c. The Ukraine crisis took the share down to 3100c on 8th March 2022, but it has been recovering since then. We believe it will continue to perform, especially as the use of artificial intelligence (AI) becomes more widespread.