Datatec forecasts dip in profits
ICT group Datatec says it expects revenues for the financial year ended February 2014 will be in the range of between $5.6 – $5.8 billion, from $5.25 billion in 2014.
In a trading statement, Datatec said it expects profit after tax to be between $64 – $69 million, from $85 million before.
Underlying earnings per share it said would come in at 34 – 37 US cents from 43.1 US cents in 2013, with earnings per share at 28 – 31 US cents, from 40.8 US cents earlier.
The group expects headline earnings per share to slip to between 30 – 33 US cents, from 40.8 US cents previously.
The group expects to maintain its distribution to shareholders of approximately 17 US cents per share in total for the year ended February 2014.
In the Interim Management Statement on 15 January 2014, Datatec said it indicated
that it might have to make a provision of up to $20 million relating to the recoverability of
certain assets in Westcon North America.
“The group has now recovered more than half of these legacy vendor claim assets. The balance has been written off, which has been reflected in the above estimates,” it said.
It noted that overall, Westcon’s trading conditions remain unchanged since the IMS, while trading in Logicalis has remained robust in all major markets and Analysys Mason has had another strong performance.
Datatec expects to release its full year results for the financial year ended February
2014 on 14 May 2014.
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