Wrap Text
Condensed Unaudited Interim Results for the Period Ended 31 August 2026 – Cash Dividend With Scrip Alternative
DATATEC LIMITED
Incorporated in the Republic of South Africa
Registration number: 1994/005/004/06
Share codes: JSE: DTC
OTCQX: DTTLF
ISIN: ZAE000017745
Company tax reference number: 9999/493/71/2
("Datatec", the "Company" or the "Group")
CONDENSED UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 AUGUST 2026 - CASH DIVIDEND WITH SCRIP ALTERNATIVE
Datatec Limited, the international information and communications technology (ICT) group, today publishes its condensed unaudited interim results for the
six months ended 31 August 2026 ("the period" or "H1 FY27") on the Stock Exchange News Service ("SENS") which are published on the Group's website:
https://www.datatec.com/interim-results.php and available via the JSE cloudlink: https://senspdf.jse.co.za/documents/2026/JSE/ISSE/DTC/H1FY27.pdf
Highlights
Restated(i)
Unaudited Unaudited
Results Results for
for the the period
period ended ended
31 August 31 August
2026 2025 %
"H1 FY27" "H1 FY26" movement
Gross invoiced income(ii) (US$ million) 4,835.0 4,096.1 18.0%
Revenue(i) (US$ million) 2,024.1 1,777.2 13.9%
Gross profit (US$ million) 511.2 483.4 5.8%
IFRS profit after tax attributable to equity holders of the parent (US$ million) 54.7 50.2 9.0%
EBITDA (US$ million) 128.1 139.0 (7.8%)
Adjusted EBITDA(iii) (US$ million) 150.7 129.2 16.6%
Underlying earnings per share(iv) (US cents) 30.2 19.3 56.5%
Basic earnings per share (US cents) 23.1 21.7 6.5%
Headline earnings per share (US cents) 22.3 22.0 1.4%
Net asset value (US$ million) 162.3 488.2 (66.8%)
Net debt (US$ million) (553.1) (54.4) 916.7%
Dividend per ordinary share (ZAR cents) 250 175 42.9%
(i) After reconsidering previous judgements applied, H1 FY26 revenue and cost of sales have been restated due to an error relating to revenue of a
specific product in Westcon International, which was presented on a gross basis rather than on a net basis. This restatement which was first
disclosed in the Group's FY26 results for the year ended 28 February 2026, resulted in a reduction of both revenue and cost of sales for the six
months ended 31 August 2025 of US$58.7 million. It had no impact on gross profit or the condensed consolidated statement of financial position.
The following non-IFRS financial measures presented in this announcement, namely gross invoiced income(ii), adjusted EBITDA(iii) and underlying earnings
per share(iv), are the responsibility of the Directors, and are presented for illustrative purposes and due to their nature, may not fairly present the
results, financial position and cash flows of Datatec. Shareholders are referred to the Pro forma supplementary information section of the Interim
financial results booklet, available on the Company's website, for the reconciliation of the non-IFRS financial measures.
(ii) Gross invoiced income represents reported revenue under IFRS 15 - Revenue from Contracts with Customers, grossed up for all items recognised on an
'agency' basis within revenue, i.e. showing all revenue on a 'principal' basis.
(iii) Adjusted EBITDA refers to EBITDA excluding restructuring costs, share-based payments, one-off tax items impacting EBITDA and acquisition,
integration and corporate actions costs.
(iv) Underlying earnings per share excludes: impairment of goodwill and intangible assets, profit or loss on sale of investments and assets,
amortisation of acquired intangible assets, acquisition-related adjustments, fair value movements on acquisition-related financial instruments,
fundamental restructuring costs, share-based payment charges, one-off tax items impacting EBITDA, acquisition, integration and corporate action
costs, and the taxation effect and non-controlling interests on all of the aforementioned.
Highlights continued
- Westcon refinancing transaction with General Atlantic returned ZAR 7.1 billion (US$438 million) to shareholders
- AI infrastructure boost
- Strong operational execution
- Continuing strong Westcon financial performance driven by networking and cyber infrastructure demand
- Exceptional Logicalis International financial performance with strong operating leverage
- Weak Logicalis Latin America performance - ongoing transformation and remodelling
JENS MONTANANA, CHIEF EXECUTIVE OF DATATEC, COMMENTED
"We are pleased with the value created from the Westcon refinancing transaction, which returned ZAR7.1 billion (US$438 million) to shareholders.
This continues to advance Datatec's value realisation journey, bringing total returns to shareholders since inception to US$1.5 billion.
The Group's strong financial results reflect the continued excellent performance at Westcon and record results from Logicalis International, with weak
operating results in Logicalis Latin America.
The quality of earnings improved with continued operating leverage. Strong AI infrastructure demand supports a robust full-year outlook."
Strategic outlook
Our strategy
Datatec's strategy is to improve shareholder returns through a combination of corporate and business development actions aimed to enhance the
competitiveness and profitability of its subsidiaries and operating divisions.
Closing the valuation gap
The Group continues to address the persistent gap between Datatec's valuation and the inherent value of its subsidiaries.
Positioned for growth
The Group is ensuring that it is positioned to take full advantage of the positive market dynamics for its technology solutions and services.
Current trading and outlook
AI adoption is accelerating investment in IT infrastructure as it expands into the enterprise and the edge of the internet, increasing the need for
secure networked environments. IT infrastructure is expected to account for a growing proportion of private and public-sector budgets.
AI infrastructure investment is supporting growth in hardware and software. Trading remains robust. The Group's focus is on improving operating leverage,
quality of earnings and cash generation and improving Logicalis Latin America's financial performance.
The Group continues to evaluate initiatives to unlock shareholder value. H2 FY27 results for the Group will be impacted by the Westcon International
minority investment and refinancing transaction and additional shares in issue as a result of the scrip take-up of the special dividend.
Dividend policy
The dividend policy remains unchanged, with a two-times cover maintained relative to underlying earnings when declaring ordinary dividends.
Dividend
Introduction
Notice is hereby given that the Board has declared an interim distribution for the six months ended 31 August 2026, by way of an interim cash dividend of
250 ZAR cents per Datatec ordinary share ("Cash Dividend") payable to the ordinary shareholders (the "Shareholders"), which will be in proportion to a
Shareholder's ordinary shareholding in Datatec at the close of business on the Record Date, being Friday, 4 December 2026 ("Record Date").
Shareholders will be entitled, in respect of all or part of their shareholding, to elect to receive new, fully paid ordinary Datatec shares ("Shares") in
proportion to their ordinary shareholding on the Record Date as an alternative to the cash dividend (the "Scrip Distribution"). The Cash Dividend has
been declared and paid out of Datatec's distributable retained profits. A dividend withholding tax of 20% will be applicable in respect of the Cash
Dividend to all Shareholders not exempt therefrom after deduction of which, the net Cash Dividend is 200 ZAR cents per Share.
The new Shares issued pursuant to the Scrip Distribution, will not be subject to a dividend withholding tax, and the issue price of the Scrip
Distribution (which will equal the volume weighted average price ("VWAP") of Datatec's Shares traded on the JSE for the 30-day trading day period ending
on Monday, 23 November 2026 less the amount of the Cash Dividend), will be settled by way of a capitalisation of Datatec's distributable retained
profits.
The Company's total number of Shares is 337 576 428 as at the date of this announcement of which the Company holds 31 677 Shares as treasury Shares.
Datatec's income tax reference number is 9999/493/71/2.
The Shareholders will be entitled to receive the Cash Dividend of 250 ZAR cents per Share in respect of their shareholding as at the close of trading on
the JSE on the Record Date, being Friday, 4 December 2026 in proportion to their ordinary shareholding in Datatec and to the extent that such
Shareholders have not elected to receive the Scrip Distribution alternative in respect of all or a part of their shareholding.
Shareholders will, however, be entitled to elect to receive a Scrip Distribution of new, fully paid Shares in respect of their shareholding in Datatec
as at the Record Date, in respect of all or part of their ordinary shareholding, instead of the Cash Dividend.
The number of Scrip Distribution Shares to which each of the Shareholders will become entitled pursuant to the Scrip Distribution (subject to their
election thereto) will be determined by reference to such Shareholder's ordinary shareholding in Datatec (at the close of business on the Record Date,
being Friday, 4 December 2026) in relation to the ratio that 250 ZAR cents bears to the VWAP of a Datatec ordinary share traded on the JSE during the
30-day trading period ending on Monday, 23 November 2026 less the amount of the Cash Dividend (250 ZAR cents), provided that, where the application of
this ratio gives rise to a fraction of a Share, the rounding principles will be applied.
Where a Shareholder's entitlement to new Shares calculated in accordance with the above formula gives rise to a fraction of a new Share, such fraction
of a new Share will be rounded down to the nearest whole number, resulting in allocations of whole Shares and a cash payment for the fraction. The
applicable cash payment will be determined with reference to the VWAP of a Share traded on the JSE on Wednesday, 2 December 2026, (being the day on
which Datatec ordinary shares begin trading 'ex' the entitlement to receive the Cash Dividend or the Scrip Distribution alternative), discounted by 10%.
Details of the ratio and the fractional entitlement will be announced on the Stock Exchange News Service ("SENS") of the JSE in accordance with the
timetable on the following page.
Circular and salient dates
A circular providing Shareholders with full information on the Cash Dividend or Scrip Distribution alternative, including a Form of Election to elect
to receive the Scrip Distribution alternative will be distributed to Shareholders on or about Thursday, 5 November 2026 (the "Circular"). The salient
dates of events thereafter are as follows:
Event 2026
Record date for Shareholders to be registered in the Company's securities register in order to be entitled to receive the Circular Friday, 30 October
Distribution of Circular announced on SENS on Thursday, 5 November
Circular and Form of Election (grey) distributed on Thursday, 5 November
Finalisation announcement released on SENS in respect of the ratio applicable to the Scrip Distribution alternative, based on the Tuesday, 24 November
30-day VWAP "ex" the Cash Dividend ending on Monday, 23 November 2026, by 11h00 on
Last day to trade in order to be eligible for the Cash Dividend and the Scrip Distribution alternative Tuesday, 1 December
Shares trade "ex" the Cash Dividend and the Scrip Distribution alternative on Wednesday, 2 December
Listing and trading of maximum possible number of Shares on the JSE in terms of the Scrip Distribution alternative from the
commencement of trading on Wednesday, 2 December
Announcement released on SENS in respect of the cash payment applicable to fractional entitlements, based on the VWAP of a Share Thursday, 3 December
traded on the JSE on Wednesday, 2 December 2026, discounted by 10%, by 11h00 on
Last day to elect to receive the Scrip Distribution alternative instead of the Cash Dividend, Forms of Election (grey) to reach Friday, 4 December
Computershare Investor Services Proprietary Limited, the transfer secretaries of the Company by 12h00 on
Record date in respect of the Cash Dividend and the Scrip Distribution alternative Friday, 4 December
Cash Dividend payments made, and CSDP/broker accounts credited/updated with Scrip Distribution shares on Monday, 7 December
Announcement relating to the results of the Cash Dividend and the Scrip Distribution alternative released on SENS on Monday, 7 December
JSE listing of Shares in respect of the Scrip Distribution alternative adjusted to reflect the actual number of Shares issued in Tuesday, 8 December
terms of the Scrip Distribution alternative at the commencement of trading on or about
All times provided are South African local times. The above dates and times are subject to change. Any material change will be announced on SENS.
Share certificates may not be dematerialised or rematerialised between Wednesday, 2 December 2026 and Friday, 4 December 2026, both days inclusive. If
Datatec maintains a certificated register, then the register will be closed from Wednesday, 2 December 2026 to Friday, 4 December 2026, both days
inclusive.
Application to the Financial Surveillance Department of the South African Reserve Bank for the payment of the Cash Dividend and the Scrip Distribution
alternative will be made and an announcement regarding the approval will be made on SENS.
Foreign shareholders
The rights to receive the Scrip Distribution in jurisdictions other than the Republic of South Africa, may be restricted by law and any failure to
comply with these restrictions may constitute a violation of the securities laws of such jurisdictions. Accordingly, Shareholders will not be entitled to
receive the Scrip Distribution, directly or indirectly, in those jurisdictions and shall be deemed to have elected the Cash Dividend alternative. Such
non-resident Shareholders should inform themselves about and observe any applicable legal requirements in such jurisdictions. It is the responsibility of
non-resident Shareholders to satisfy themselves as to the full observance of the laws and regulatory requirements of the relevant jurisdictions in
respect of the Scrip Distribution, including the obtaining of any governmental, exchange control or other consents or the making of any filing which may
be required, compliance with other necessary formalities and payment of any issue, transfer or other taxes or other requisite payments due in such
jurisdictions. Shareholders who have any doubts as to their position, including, without limitation, their tax status, should consult an appropriate
adviser in the relevant jurisdictions without delay.
Other information
This announcement may contain statements regarding the future financial performance of the Group which may be considered to be forward looking
statements. By their nature, forward looking statements involve risk and uncertainty, and although the Group has taken reasonable care to ensure the
accuracy of the information presented, no assurance can be given that such expectations will prove to have been correct.
The Group has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in
forward looking statements and there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. It is
important to note, that:
1. unless otherwise indicated, forward looking statements indicate the Group's expectations and have not been reviewed or reported on by the Group's
external auditors;
2. actual results may differ materially from the Group's expectations if known and unknown risks or uncertainties affect its business, or if estimates or
assumptions prove inaccurate;
3. the Group cannot guarantee that any forward looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on
these forward looking statements; and
4. the Group disclaims any intention and assumes no obligation to update or revise any forward looking statement even if new information becomes
available, as a result of future events or for any other reason, other than as required by the JSE Listings Requirements.
This results announcement is the responsibility of the directors of the Group. This results announcement is only a summary of the information contained
in the full announcement and does not contain full or complete details. Any investment decisions by investors and/or shareholders should be based on a
consideration of the full announcement published on SENS and Datatec's website.
This results announcement has not been audited or reviewed by the Group's external auditors.
Results presentation
Shareholders are herewith informed that Datatec will hold a virtual presentation at 09:00 am SAST on Thursday, 29 October 2026 to present the results
to investors.
Presentation details:
View and listen mode: https://url.za.m.mimecastprotect.com/s/sifDC580O5UgVQESNCqGskXT9A?domain=corpcam.com. The presentation slides and results booklet will be available prior to the presentation
on Datatec's website at https://url.za.m.mimecastprotect.com/s/lltgC3lJM5H75JqtQtZEsQwwYk?domain=datatec.com.
On behalf of the Board
M Makanjee JP Montanana IP Dittrich
Chair Chief Executive Officer Chief Financial Officer
29 October 2026
Directors
M Makanjee (Chair)+, #JP Montanana (CEO), *IP Dittrich (CFO), #CR Jones+, ^SJ Everaet+, S Mayet+, ~LC Rapparini+, DS Sita+
# British
* American
^ Belgian
~ Brazilian
+ Non-executive
Registered office
15th Floor, The Leonardo, 75 Maude Street, Sandown, Sandton, 2146
Sponsor
Pallidus Exchange Services Proprietary Limited
Transfer secretaries
Computershare Investor Services Proprietary Limited
Independent auditors
Deloitte & Touche
Date: 29/10/2026 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
