Network services provider Dimension Data has doubled earnings in its most recent fiscal year on the back of strong sales growth.
For the 12 months to the end of September, DiData reported net profit of $114.5m, up from $57.2m the previous year, on sales that grew 23% to $3.8bn. The company’s profitability was boosted by a gain of $22.2m from the revaluation of part of its South African property asset. At an operating level, profit increased by 54% to $123.9m.
Johannesburg, South Africa-based DiData’s largest business unit, which provides network integration services, reported revenue growth of 17.6% to $1.7bn as more and more clients opted to consolidate their voice and data infrastructures to a single IP network supporting voice, data and video. The company said that fiscal 2007 saw a 47.8% increase in converged communications sales, reflecting market acceptance of IP as the de facto standard for telephony.
Revenue growth was solid in all four of DiData’s key geographic regions, but the Middle East and Africa led the way, increasing sales by 36.9% to $849.2m on the back of robust growth in the telecoms and public sectors. The company said that a significant part of its success in the African market was due to the positive contribution of the Black Economic Empowerment partnership.
DiData’s Asian operation grew revenue by 20.5% to $580.8m, driven by strong performances from the converged communications and client interactive services business lines. European sales increased by 20.3% to $960.8m, thanks largely to a 31.5% growth in product revenue.
Looking ahead, DiData said it expected to report strong organic revenue growth in fiscal 2008 but warned that future performance may not match the exceptional levels recorded over the last 12 months. Following the results announcement, shares in the company rose over 2% to 62 pence in trading on the London stock exchange.