ZAR273M Profit and a Strategic African Core: Datatec’s Financial Results in Review

Datatec Limited,  the South Africa-headquartered ICT group listed on the JSE, has released its audited financial results for the year ended 28 February 2025. While operating globally across over 50 countries, the report underlines the company’s continued operational and strategic relevance within the African continent—home to its roots and a significant focus area for its service-led transformation agenda.

Strong Financial Performance Reflects Operating Discipline

Datatec Limited reported a sharp rise in net profit to ZAR273 million for FY25 (up from ZAR15 million the previous year), driven by increased management fee income (ZAR97 million in 2025 vs. ZAR81 million in 2024) and a substantial dividend of ZAR253 million received from subsidiary Datatec PLC. Despite higher foreign exchange losses of ZAR12 million and a drop in interest received, the group maintained a strong net asset position and ended the year with ZAR5.63 billion in equity.

Africa Remains a Strategic Hub

Datatec’s African operations, particularly through its Sandton-based headquarters, continue to serve as a strategic management and governance node for the Group. The company reaffirmed its operational stability, with South Africa housing core executives, finance leadership, and the group’s public listing. Datatec also continues to play a pivotal role in shaping Africa’s digital infrastructure story through its subsidiaries and advisory work.

Local developments included:

• Shareholder Engagement and Capital Restructuring: The company continued its shareholder-focused approach, offering both final and interim dividends through cash payouts and scrip alternatives, with 6.6 million shares issued through these schemes during FY25.
• Governance Anchored in Johannesburg: The Audit, Risk and Compliance Committee—led by South African director MJN Njeke—met six times during the year and confirmed the adequacy of internal controls, financial resources, and reporting procedures.
• Regulatory Confidence and Transparency: The Company’s Secretary and auditors affirmed full compliance with the South African Companies Act, while the directors reaffirmed their commitment to ongoing operations under a going concern basis.

Strategic Share Buybacks and Long-Term Vision

Datatec intensified its share repurchase activity, buying back ZAR225 million worth of treasury shares during the year. These moves reflect management’s confidence in the long-term value of the company and a disciplined approach to capital allocation amid broader global economic uncertainty.

Talent and Transformation

Share-based payment expenses (ZAR4 million) and the Deferred Bonus Warrant Scheme (DBW) continue to reflect Datatec’s focus on performance alignment and leadership retention across its African and global teams. Escrow shares increased by nearly ZAR12 million year-on-year, underscoring ongoing investment in human capital.

Datatec’s 2025 financials confirm the group’s robust position at the intersection of African leadership and global ICT strategy. While its revenue mix and subsidiaries span continents, its operational, governance, and shareholder roots in Africa remain foundational to its future.

As Africa’s demand for digital infrastructure and ICT services intensifies, Datatec’s Johannesburg-based leadership will likely continue shaping not just the company’s trajectory—but also Africa’s evolving digital economy.