Datatec maintains full-year forecasts
Dual listed ICT group Datatec, says that based on current exchange rates and market conditions, its forecasts for the financial year remain unchanged.
Overall group revenues and earnings before interest, taxes, depreciation and amortization in period from 1 March 2013 to 30 June 2013, are similar to those for the four months ended June 2012, the group said. But it noted that underlying earnings and headline earnings per share are slightly lower.
Trading conditions remain largely the same as in the second half of the financial year ended February 2013 (FY13), Datatec said.
It noted that Westcon, its converged communications solutions provider, continues to experience a more challenging trading environment, but its IT firm Logicalis has continued to perform robustly.
Gross margins remained stable, Datatec said.
In May the group published forecasts for the financial year ending February 2014.
These are for revenues of between $5.6 billion and $5.9 billion, profit after tax of approximately $102 million, underlying earnings per share of approximately 50 US cents and earnings and headline earnings per share of approximately 46 US cents.
Jens Montanana, CEO said: “We remain cautious about the prospects for growth in the geographies in which we operate. However, our global footprint and the diversity of our business streams continue to provide resilience in these mixed trading conditions.
“At Westcon the strongest performance has been in developing markets, Europe remains
persistently weak and the recent SAP implementation in North America has impacted
volumes in the short term. We are focused on improving Westcon´s operating margin.”
“We are very pleased with the continued robust performance at Logicalis.”
The group said that revenue growth in Westcon´s markets has been varied: Latin America, Middle East and Africa reported year on year sales increases; Europe had modest growth; and sales in Asia Pacific declined.
In North America the transition to a new SAP-based ERP platform caused operating disruptions which negatively impacted revenues. Strong growth in security sales was reported across several regions.
Overall gross margins improved from the comparative period despite some margin pressures in Latin America.
Operating costs also climbed above the prior period due to the acquisition of Afina in July 2012.
Logicalis has had a strong start to the year, Datatec said, reporting overall revenue and operating profit growth over the prior period, and in line with the Board´s expectations.
On 4 March 2013 Logicalis acquired four European operations of 2e2 for EUR24 million ($31 million).
“These businesses have contributed positively to the overall performance of the division,” it said.
Datatec said that the performance of its consulting services division improved compared to last year with increased profitability at Analysys Mason.
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