Datatec, the ICT group, says it is unlikely to reach its published forecasts for the\u00a0year ending February 2013, as\u00a0Westcon’s performance in the third quarter has been weaker than expected.<\/p>\n
“Since the group published its half year results on 17 October 2012, Westcon’s trading in Q3 has been slower than expected and comparatively lower than the same period last year,” Datatec said in a statement.<\/p>\n
“The Board now considers it unlikely that the group will reach its published forecasts,” it said.<\/p>\n
The group said that continued weak conditions in Europe, business disruption in North America due to hurricane Sandy, and lower than expected Federal business\u00a0had negatively affected trading so far in the second half.<\/p>\n
Logicalis, however, continues to trade strongly and in line with\u00a0expectation, but demand in the consulting services division weakened in the second half.<\/p>\n
The group’s published forecasts for the financial year ending February 2013 are for revenues of between $5.5 billion and $5.8\u00a0billion, and profit after tax of approximately $104 million.<\/p>\n
Datatec expects underlying earnings per share of approximately 55 US cents and\u00a0earnings and headline earnings per share of approximately 50\u00a0US cents.<\/p>\n
In October, it reported revenues of $2.62 billion in its interim results for the six months ended August 2012, from $2.44 billion before.<\/p>\n
Datatec warned that trading and underlying earnings continued to improve, but growth was slowing in a weakening economic climate.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Datatec\u2019s shares are listed on the JSE and the Alternative Investment Market of the London Stock Exchange.<\/p>\n
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