Datatec, run by Jens Montanana, has more than doubled its interim dividend after reporting a 109.5 per cent jump in headline earnings per share HEPS for the six months to 31 August 2025, underscoring solid trading at its Westcon and Logicalis businesses. The board declared R1.75 per share, up from 75 cents a year earlier, with a scrip alternative alongside the cash payout. The distribution totals about R412 million.
Montanana, who owns an 18.33 stake in the company, is set to pocket R75.6 million 4.3 million in dividends. HEPS rose to 22.0 US cents from 10.5 US cents, while adjusted EBITDA increased 21.9 per cent to US129.2 million. Management pointed to operating leverage in security, networking and cloud, with vendor mix and services attachment lifting gross margins. The group said demand remained resilient across key geographies despite patchy macro indicators. Westcon delivered another strong half as enterprise security and networking vendors continued to push through the channel and services contribution rose. Logicalis International improved utilisation, tightened costs and expanded higher-margin services, helping group margins hold up even as hardware pricing normalised. Performance in Latin America strengthened, broadening the earnings base and smoothing currency volatility effects. The balance sheet improved. Excluding lease liabilities, Datatec moved to a net cash position, giving the company more flexibility to fund working capital and bolt-on investments without adding leverage. Cash generation was supported by tighter inventory management and disciplined capex. Management said capital allocation will continue to favour organic growth, selective acquisitions and shareholder returns. The dividend step-up marks a reset in the payout profile after several years of cautious distributions. Management flagged ongoing opportunities in AI-aligned infrastructure, cybersecurity and enterprise networking, while reiterating a focus on execution rather than chasing volume. Priorities for the second half include protecting gross margins at Westcon, deepening services penetration at Logicalis and converting the order book into cash as supply chains and lead times settle. The shares eased on the day of the release, suggesting investors had largely priced in stronger numbers after earlier guidance. Even so, the earnings beat, firmer cash position and higher dividend keep Datatec among the better-performing tech names on the JSE this season.