DTC - Datatec Limited - Interim management statement
15 January 2008 9:00
DTC
 DTC                                                                             
DTC - Datatec Limited - Interim management statement                            
DATATEC LIMITED                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
INTERIM MANAGEMENT STATEMENT                                                    
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international        
Information and Communications Technology (ICT) group, is today publishing its  
first interim management statement* (IMS), covering the period from 1 September 
2007 to 31 December 2007.                                                       
Group                                                                           
Group trading in the first four months of the second half of the financial year 
has been much stronger than the first half, with significant improvements in the
performance of Logicalis in particular, as a consequence of the restructuring   
undertaken in the US in August 2007.  The Group is on course to produce a strong
second half performance and full year results in line with expectations.        
Group revenues and profitability for the 10 months to 31 December 2007 improved 
in all areas when compared with the prior year`s first 10 months. Continuing    
good demand for the Group`s technology solutions and services, coupled with a   
seasonally normally stronger second half performance, indicate that all         
divisions are positioned to deliver full year-on-year growth.                   
Both gross and operating profit margins have also improved in the second half,  
as a result of continuing favourable demand for the Group`s products and        
services, wider geographic reach and a strategy that has resulted in an improved
product mix, a better balance between vendors and continued growth in services. 
The Board is confident that the Group will meet its target of achieving over    
$4bn in revenues for the current financial year to 29 February 2008.  (FY07:    
$3bn). The Group continues to execute a tightly controlled approach to managing 
its operating costs.                                                            
Westcon                                                                         
Revenues have continued to grow in all regions with gross margins and operating 
profit margins expanding. The contribution from new initiatives in developing   
countries in Eastern Europe and South America is expected to grow rapidly. As   
earlier reported Westcon has recently also established a Cisco distribution     
presence in Brazil. This new operation has the potential to grow rapidly and    
report incremental revenues of over $100m over the next two years.              
Logicalis                                                                       
The early decision by management to restructure the US operations in response to
the overall slowing of the market in the first half, has resulted in a          
significant improvement in second half profitability.  A strong second half     
performance in all regions is expected to produce a record performance for this 
division.                                                                       
A number of long-term annuity deals, such as the $150m contract with the Welsh  
Assembly Government (the largest ever contract awarded to Logicalis UK),        
exemplify Logicalis` growing services capabilities. We continue to look for     
opportunities in high growth markets and recently acquired the remaining 20%    
interest in Logicalis South America.                                            
AnalysysMason                                                                   
The consulting group has had a robust second half so far and is expected to     
produce year on year growth. The investments made in the early part of the year,
within the research division, are starting to yield positive results.  This area
of the business is expected to contribute increasing profitability from next    
year.                                                                           
Middle East and Africa                                                          
This division continues to grow revenues strongly. New countries across Africa, 
the Middle East and within emerging Asia are being targeted for further         
investment.                                                                     
Preliminary results                                                             
The Group expects to release its preliminary results for the year to 29 February
2008 on Wednesday 14 May 2008.                                                  
The financial information on which this statement is based has not been reviewed
and reported on by Datatec`s auditors.                                          
Datatec Limited  (www.datatec.co.za)                                            
David Pfaff, Group Finance Director        +44 (0) 17537 97111                  
                                                                                
Dresdner Kleinwort                                                              
Simon Russell/Andrew Holloway           +44 (0) 20 7623 8000                   
                                                                                
College Hill                                                                    
Adrian Duffield/Jon Davis                +44 (0) 20 7457 2020                   
Nick Williams/Fred Cornet (SA press)     +27 11 447 3030                        
15 January 2008                                                                 
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).                                                 
*An Interim Management Statement (IMS) is a statement that the UK Financial     
Services Authority now requires UK companies fully listed on the London Stock   
Exchange to issue during the first six-month period of the financial year and   
another statement during the second six month period of the financial year.     
This statement must be made in a period between ten weeks after the beginning,  
and six weeks before, the end of the relevant six-month period.                 
Although Datatec is listed on AIM in London, the Board has decided to publish   
IMS statements in order to provide the financial markets with regular update on 
the Group`s trading performance.  The Group plans to publish its IMS statements 
in January and July each year.                                                  
Date: 15/01/2008 09:00:01 Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.