DTC
DTC
DTC - Datatec Limited - Pre-Close Statement
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
PRE-CLOSE STATEMENT
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international
Information and Communications Technology (ICT) group, today announces its pre-
close statement for the six months ended 31 August 2007.
Group
Group trading during the first half of the financial year has been in line with
the Board`s expectations, with the exception of Logicalis` US operations. The
Board remains confident of a strong performance in the second half across the
Group and expects to report continued improvement in Headline Earnings per Share
(excluding any positive or negative unrealised foreign exchange movements) for
the year to 29 February 2008.
Group revenues for the six months to 31 August 2007 are expected to increase by
26% to approximately $1.9 billion (2006 restated: $1.52 billion). The Board
expects EBITDA to be approximately $60 million (2006: $52.0 million) and
Headline Earnings per Share for the first half to increase by approximately 7%
in relation to the comparative financial period last year.
Westcon
Westcon has continued to perform well, with strong revenue growth in Europe and
Asia Pacific and lower growth in the US. Revenues and gross profit are expected
to be in line with the Board`s expectations for the first six months of the
financial year. Operating costs as a percentage of revenues have increased,
largely as a result of the NOXS and Crane acquisitions in Europe. As expected,
Westcon saw lower seasonal contribution from these acquisitions and their
integration is progressing well. Overall, Westcon EBITDA margins are expected
to increase slightly compared with the first half of last year.
Logicalis
Within Logicalis, Europe and South America have performed strongly and continued
to benefit from customers` complex ICT needs by focusing on demand for advanced
systems and networking infrastructure, unified communication, data centre and
managed services. As stated at the full year results, growth in the US has
moderated. However, during the second quarter growth slowed more than
management anticipated. Consequently operating costs, which had increased as a
result of the recent acquisitions and investment in the sales infrastructure,
were too high. Management has taken prompt action to restructure the US
operations, which has resulted in a workforce reduction of approximately 12%
with all costs from this action accounted for in the first half. Logicalis is
therefore expected to report lower first half EBITDA compared with last year.
Logicalis management is confident that the swift actions taken will result in an
improved performance in EBITDA for the full year compared to the previous year.
Analysys Mason Group
Analysys Mason Group has performed well, with a modest increase in revenues and
improved gross margins, while planned investment into the research operation
muted profitability growth.
Africa and Middle East
Africa and the Middle East have performed in line with Board`s expectations
following last year`s significant improvements, with revenues and profits
significantly up.
Interim results
The Group expects to publish its interim results for the six months ended 31
August 2007 on Thursday 25 October 2007.
The financial information on which this pre-close statement is based has not
been reviewed and reported on by Datatec`s auditors.
12 September 2007
Datatec Limited (www.datatec.co.za)
David Pfaff, Group Finance Director +44 (0) 17537 97111
Wilna de Villiers, Group Marketing +27 (0) 11 233 1013
Manager
Dresdner Kleinwort
James Rudd +44 (0) 20 7475 7006
College Hill
Adrian Duffield/Jon Davis +44 (0) 20 7457 2020
Nick Williams/Fred Cornet (SA press) +27 11 447 3030
Note to Editors
Datatec Limited is an international Information & Communications Technology
(ICT) group focused on the supply of advanced ICT and the delivery of
professional services into the higher growth segments of the global market. The
Group`s main lines of business comprise the global distribution of advanced
networking and communications convergence products (Westcon Group Inc), IT
infrastructure solutions and network integration (Logicalis Ltd) and strategic
telecommunications consulting (Analysys Mason Group Ltd). Datatec is registered
in South Africa and its shares are listed in Johannesburg and London. The Group
has more than 3,000 employees around the world.
In the year to 28 February 2007, the Group reported an increase in revenue of
17% to $3,2 billion (2006 restated: $2,7 billion), operating profit increased
45% to $100 million (2006: $69 million), and headline earnings per share grew to
40.80 cents (2006: 26.9 cents).
Date: 13/09/2007 08:00:01 Produced by the JSE SENS Department.
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