Executive directors' report

“I am pleased to report a very strong operating and financial performance across all regions and metrics for the Group.

The improving profitability and cash generation of the Group's divisions enabled us to increase our dividend payout policy to 50% of underlying* earnings per share.

Increasing IT complexity driven by AI and the significant rise in interconnected digital communities is driving infrastructure demand in areas like networking and cyber security where we have deep domain knowledge and many years of experience.”

Jens Montanana

CEO

Strategic overview

Datatec's strategy is to improve shareholder returns over the medium term through a combination of corporate and business development actions aimed to enhance the competitiveness and profitability of its subsidiaries and operating divisions.

The Group continues to see good demand for its technology solutions and services worldwide with subsidiaries well-positioned to service customers in their respective markets.

The Group's Strategic Review continues to address the persistent gap between Datatec's valuation and the inherent value of its subsidiaries while also ensuring that the Group is positioned to take full advantage of the positive market dynamics for its technology solutions and services.

As part of its initiatives, Datatec broadened its investor relations programme during FY25 and was admitted to the OTCQX trading platform in the US to increase international investor access.

Datatec also announced a share repurchase programme that commenced on 28 November 2024 in accordance with the authority received at its last AGM. The shares that have been repurchased shall be cancelled as issued shares in due course and will revert to authorised but unissued share capital status.

Dividends

Dividend policy

The implementation of the new management incentive plans in some of the divisions has resulted in upstreaming of cash to the parent company in the form of returns on fixed return equity instruments (loan notes). Given that there is access to more cash at the parent company, the Group is changing its dividend policy to maintain a two‑times cover relative to underlying* earnings when declaring ordinary dividends (previously three-times cover). Refer to the subsequent events section for the final dividend declared for FY25.

FY25 dividends

On 24 October 2024, the Board declared an interim dividend of 75 ZAR cents (approximately 4 US cents) for H1 FY25 in the form of a cash dividend with scrip distribution alternative. This amounted to ZAR175 million.

FY24 dividend

A final cash dividend with a scrip distribution alternative of 130 ZAR cents per share (approximately 7 US cents per share), amounting to ZAR298.4 million was declared by the Board during FY24 and paid during FY25.

Financial results

Refer to the executive directors' commentary on Group financial results for an overview of the Group's financial performance for the year.

Subsequent events

On 26 May 2025, the Board declared a final dividend for FY25 of 200 ZAR cents per share equivalent to approximately 11 US cents per share totalling US$26 million with the customary form of a cash dividend with a scrip distribution alternative.

There were no other material subsequent events.

Divisional reviews

Refer to the Westcon International divisional review in the value through our divisions section for Westcon International's current year performance.

Refer to the Logicalis International divisional review in the value through our divisions section for Logicalis International's current year performance.

Refer to the Logicalis Latin America divisional review in the value through our divisions section for Logicalis LATAM's current year performance.

Refer to the Corporate and Management Consulting divisional overview in the value through our divisions section for a brief overview of Corporate and Management Consulting's current year performance.

Current trading and outlook

We expect that the trend toward higher software sales and annuity services will continue, improving the Group's margins and cash flow profile. There is continued strong demand for the Group's products and solutions, which positions the Group well in an increasingly complex environment.

The Board expects that all divisions will continue to improve their financial performance in the year ahead. The Group will remain focused on unlocking shareholder value in the context of its Strategic Review.