ADR: Underlying EPS up 43% y-o-y

Datatec reported a strong performance for H126, with adjusted EBITDA growth of 22% y-o-y, adjusted EBITDA margin expansion from 5.9% to 7.0% and 43% growth in underlying EPS (uEPS) to 19.3c. Software and services increased to 71% of gross invoiced income, further improving margins and visibility. Net debt halved from the prior year level and the company announced an interim dividend of 175ZARc/10c (20c for the ADR, +133% y-o-y). Management expects all divisions to report a better financial performance in FY26 than in FY25. We are reviewing our forecasts.