DiData puts in a strong H1 2009 performance

Dimension Data (DiData) has bucked the economic downturn with a robust set of half-yearly results.

The integrator, which snapped up Teksys earlier this year (Channelweb, 3 February) saw turnover hit $1.95bn for the six months ended 31 March 2009, compared to $2.17bn for the same period a year ago.

But operating profit (before exceptional items) increased from $85m to $88.7m. It also revealed a cash reserve of $345.4m.

Services were a strong performer, growing 21.1 per cent during the six months, including a 25.2 per cent jump in managed services.

Product revenue growth was described as ‘muted’ to reflect economic conditions and decreased client cap ex.

Europe was hailed as a star performer for the financial period, delivering strong growth and a doubling of operating profit.

Brett Dawson, chief executive of DiData, said: “The Group’s first half performance has been particularly pleasing in light of the challenging trading conditions we’re experiencing in some of our key markets. Excellent execution in our services business led our overall revenue and profitability growth in the period.

“The market opportunity for IT services within our SI business has remained healthy. The Group has taken advantage of the current economic environment to drive market share gains in maintenance, support and multisourcing-related services.”

Looking forward, Dawson said the future will remain “challenging”.

“Business visibility will be uncertain. There are some signs of stabilisation and our interim results demonstrate a solid platform as we enter the second half of the financial year,” he said. “We continue to see opportunities throughout our Solutions and Services portfolio, and believe the medium term opportunities are robust.”

However Dawson stressed that the tough times are not over yet.

“At present it is too early to call an upturn in the market, however we are optimistic about our future prospects and believe DiData is well positioned for the long term.”