Datatec lifts H1 revenue in weakening climate
Datatec the international ICT group on Wednesday (17 October) reported revenue of $2.62 billion in its interim results for the six months ended August 2012, from $2.44 billion before.
Datatec said that trading and underlying earnings continue to improve but growth is slowing in a weakening economic climate.
Operating profit rose to $71.05 million, from $66.24 million in 2011, while earnings before interest, depreciation and amortisation climbed 8% to $91.9 million.
Underlying earnings per share improved 8% to 23.5 US cents, from 21.8 US cents in 2011, and Datatec increased its interim capital distribution by 14% to eight US cents per share, from 7 US cents before.
Datatec’s shares are listed on the JSE and the Alternative Investment Market of the London Stock Exchange.
Jens Montanana, chief executive of Datatec, said: “As we highlighted in our IMS statement in July, overall revenues and underlying earnings are continuing to improve but the rate of growth has slowed as the macro-economic climate has become more uncertain. This became more pronounced in the second quarter in all regions with the exception of Latin America.
“The diversity of our business streams and our global footprint continue to be strong assets, allowing the group to deliver a relatively strong performance against a disappointing market.
“Based on current exchange rates and trading conditions our full year forecast remains unchanged but has become more challenging than we anticipated in May.”
During the first half of FY13, Datatec announced four new acquisitions which are expected to enhance margins, extend the group’s geographical reach and strengthen its position in existing markets.
The most notable of these was the acquisition of 100% of the share capital of the Afina Group by Westcon, announced in July.
In May Datatec acquired, on behalf of Westcon, the 33.1% interest in its African subsidiaries which it did not already own in order to secure 100% ownership of those businesses. The deal excluded Westcon SA.
Looking ahead, the group said that its 2013 financial year forecast remains unchanged despite increasingly uncertain economic outlook. It forecasts revenues of between $5.5 billion and $5.8 billion, from $5.03 billion achieved in FY 2012.
Datatec also anticipates underlying earnings per share of approximately 55 US cents, from 47.9 US cents before.
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