Datatec expects to double FY profit
Listed ICT group, Datatec (DTC) on Wednesday forecast earnings and headline earnings of approximately 42 US cents per share for the financial year ending February 2012 – from 22.8 and 23.9 US cents respectively, in 2011.
In early trade on the JSE, the group’s shares lifted 42 cents to R43.20.
The group said it expects revenues of approximately $5 billion (2011: $4.3 billion); profit after tax of approximately $84 million (2011: $46 million); and underlying earnings per share of approximately 47 US cents – from 37.9 US cents in 2011.
On such a basis, a final capital distribution in lieu of a dividend of 9 US cents is anticipated, resulting in total capital distributions of 16 US cents forecast for the 2012 financial year – from 13 US cents previously.
In publishing its interim management statement covering the period from 1 September 2011 to 31 December 2011, Datatec said it’s trading and profitability continues to improve.
“As anticipated, the financial results for the second half of the current financial year are expected to be better than the results for the first half of the current financial year, and comparatively better than the results for the second half of the prior financial year,” it said.
The group also highlighted the current backdrop of poor economic data, sovereign indebtedness issues and continuing weak consumer markets in many of its markets.
“During the period, conditions have been challenging in North America and Europe in particular, although there have been recent signs of recovery in some of the Group’s US operations. The exceptional performance previously reported in South America has continued and Asia Pacific is performing well,” Datatec said.
Jens Montanana, CEO said: “Datatec’s global reach and diversity are continuing to help insulate us against the poor economic backdrop of many of the world’s economies.”
Westcon
The group said that the strong Westcon financial performance delivered during the first half of the current financial year continued benefitting from good operating leverage.
In December 2011, Westcon completed the refinancing of its North American credit facility with a banking syndicate led by HSBC. Westcon has the right to increase this $250 million facility by an additional $50 million.
Logicalis
Datatec said that a “solid performance” by Logicalis reported in the interim results in October 2011, continued, with revenues and operating margins expected to further improve in the second half over the first half of the financial year.
“In particular, Logicalis’ exceptional performance in Latin America continued, while business in the US and UK markets has been more challenging,” it said.
Profitability in the second half of the current financial year is expected to be better than both the first half of the current financial year and the second half of the prior financial year.
Consulting services
The financial performance of the consulting division is continuing to improve, with much better profitability than the prior financial year.
Datatec said it expects to release its full year results on May 16.
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