Datatec's top line for the year to February is still expected to come in at between $5.6 billion and $5.8 billion, a slight increase on the previous year's revenue, it said this morning.
However, the company has warned shareholders that profit after tax will be lower than what it reported in 2013, as this figure is expected to be between $64 million and $69 million, compared with the $85 million it declared in 2013.
In January, it updated the market and said it was continuing to experience a challenging time at its Westcon business, its largest unit.
The dual-listed company said profit would be lower, because of slower trading at Westcon, the impact of the Westcon enterprise resource planning transition in North America, and a non-cash provision of up to $20 million related to the recoverability of certain assets in Westcon North America.
Datatec says it has now recovered more than half of these legacy vendor claim assets, while the balance has been written off.
Westcon accounts for 71% of Datatec's revenue and reported a disappointing first half. This was after it was adversely impacted by the rollout of an ERP system in North America, which had a big effect on transaction volumes, says Datatec.
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