Datatec says while its revenue and earnings before interest, tax, depreciation and amortisation are similar to what was reported in the corresponding period to June last year, underlying earnings and headline earnings per share are slightly lower.
The group's trading update, published yesterday, sent its earnings slightly down to close 31c or 0.53% lower at R58.69. Datatec says its full-year forecast remains unchanged, based on current exchange rates and market conditions.
Datatec has said it expects revenue for the 2014 financial year to come in at between $5.6 billion and $5.9 billion, while underlying earnings per share should be about $0.50, with earnings and headline earnings at about $0.48c. Profit after tax for the full year is anticipated to be about $102 million.
Trading conditions remain largely the same as in the second half of the last financial year, it says. Westcon is still seeing a more challenging trading environment while Logicalis continues to perform "robustly", says Datatec.
Revenue growth in Westcon's markets has been varied: Latin America, Middle East and Africa have reported year-on-year sales increases; Europe had modest growth; and sales in Asia Pacific declined, the group notes.
In North America, the transition to a new SAP-based ERP platform has caused operating disruptions which have negatively impacted revenue, says Datatec. However, strong growth in security sales has been reported across several regions.
CEO Jens Montanana says Westcon's strongest performance has been in developing markets, as Europe remains persistently weak and the recent SAP implementation in North America has impacted volumes in the short term. "We are focused on improving Westcon's operating margin."
The group says Logicalis had a strong start to the year, reporting overall revenue and operating profit growth compared with the prior comparable period, which is in line with the board's expectations.
"We are very pleased with the continued robust performance at Logicalis," says Montanana.
Montanana notes the group is "cautious" about the prospects for growth in the geographies in which it operates. "However, our global footprint and the diversity of our business streams continue to provide resilience in these mixed trading conditions."
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