Dual-listed Datatec's trading and underlying earnings continue to improve, but growth is slowing in a weakening economic environment, as the fallout of the Eurozone economic problems spreads globally.
The group yesterday issued a trading statement for the period between March and the end of June. Datatec says based on current exchange rates and trading conditions, its forecasts for the financial year remain unchanged.
In May, the company said it aimed to boost revenue to at least $5.5 billion in the new financial year, while seeking to grow core underlying earnings to $0.55. For the year to February, Datatec met its guidance of $5 billion in revenue, a 17% year-on-year gain, boosted mostly through organic growth.
Overall group revenue improved across all divisions in comparison with the four months to June 2011, says Datatec. However, it points out that gross margins have come under some pressure, particularly within Westcon in developed markets, although both the Logicalis and Consulting Services divisions have performed relatively robustly.
From a regional perspective, Asia and Latin America remain resilient, Europe is still weak and the US has slowed, Datatec says in a statement.
CEO Jens Montanana says the “diversity of our business streams and global footprint has once again enabled the group to improve revenues and underlying earnings in a difficult environment.
“Although the outlook has become more uncertain, the defensive nature of our business model continues to be a strong asset.”
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