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Datatec improves performance

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 19 Mar 2015
North and South America have delivered robust performance for Datatec, says CEO Jens Montanana.
North and South America have delivered robust performance for Datatec, says CEO Jens Montanana.

Datatec has seen improvements in its performance in the year that ended in February, as Westcon and Logicalis boost its top line.

The group, which will publish its results on 13 May, expects to hit revenue of $6.4 billion, compared to $5.7 billion last year, while underlying earnings per share should come in at between 41USc and 43USc.

Datatec, which is listed in Johannesburg and London, says its progress was driven by an improved performance at Westcon, which accounts for about 75% of its revenue.

In addition, it notes, Logicalis improved its top line, and operating margins at both of its biggest units gained slightly.

"Westcon has continued its robust recovery over the previous year with strong growth in sales and market share gains, particularly in North America." Datatec adds Logicalis delivered a "comparative and sequential improvement" in the second half of the year.

Westcon had been battling to grow its top line because of the rollout of an enterprise resource planning system. In January, CEO Jens Montanana noted the "last few months have been strong across all divisions, with North and South America in particular delivering robust performances".

The company anticipates maintaining its final distribution to shareholders at 9USc, which is on par with last year. In total, it will have paid out 17USc per share to stockholders during the year.

However, Datatec cautions the dollar's "marked" strengthening over recent months diminished the contribution of operations in countries with other currencies, and - should this trend persist - its results for the new financial year will be affected.

In January, the company maintained its forecast - of revenue of more than $6 billion and underlying earnings per share of more than 40c - reiterated at interim stage.

In the six months to end August, Datatec said it achieved "solid" revenue growth of 8%, to $3 billion.

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