DiData sees clients spending in second half

News

DiData sees clients spending in second half

Alex Scroxton
London and Johannesburg-listed ICT solutions provider Dimension Data has reported headline growth in sales, profits and margins for the first half of 2010, and said it anticipates growth in IT and services spending patterns during the next six months.

The company's reported revenues for the period were up 11% to $2.16bn (£1.44bn), although thanks to a miserable performance at its African comms infrastructure unit Plessey, the figure slid 4% at constant currency rates.

Net profits came in at $74.9m, up 4% on the year-ago period.

DiData hailed growth in its SI business thanks to increased services and managed services business, particularly in the Americas, as the big driver in its first half performance, and although European sales were down slightly, the UK put in a strong showing.

Sales at Hants-based Microsoft LAR Teksys, which DiData acquired in February 2009, also came in ahead of expectations, the firm added, although it did not break out any figures for the subsidiary.

"We are optimistic about our market positioning and relevance and believe that the market has turned in terms of clients' willingness to spend on IT and IT services," said CEO Brett Dawson.

"In response, we continue to invest in resources to meet market demand and accelerate our Services strategy. We anticipate that the second half of 2010 will see further recovery in client spend and are confident that our revenue targets of single digit constant currency growth in revenue for the full year are achievable," he continued.

The business is now targeting constant currency revenue growth of 10% on a compound basis during the next five years, with services sales growing ahead of product, according to Dawson.

Join the conversation Comment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.