DTC
DTC
DTC - Datatec Limited - Pre-Close Year End Trading Update
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
PRE-CLOSE YEAR END TRADING UPDATE
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international
Information and Communications Technology (ICT) group, is today publishing a
year end trading update for the financial year ended 28 February 2009.
The financial performance of the Group remains in line with the expectations set
out in the trading statement and IMS on 15 January 2009. Accordingly, the Board
expects earnings per share(1) and headline earnings per share(1) to be between
25 and 29 US cents per share, with underlying earnings per share(2) expected to
be between 31 and 35 US cents per share.
The Board plans on paying the same level of annual capital distribution at 12 US
cents per share for the financial year ended 28 February 2009. Further details
on the distribution will be included in the results announcement.
The Group has focused on improving its cash generation and therefore the Board
is particularly pleased that operating cash generation in the second half of the
financial year has been very strong within Westcon, well ahead of the Group`s
expectations. At the end of the financial year, Datatec moved to an overall net
cash position from a previous net debt position.
As indicated in the trading statement and IMS in January, product revenues have
recently been following trends seen in many of the world`s major economies and
have been tracking between 10% and 15% lower than for the same period last year.
However, services and consulting revenues have been less impacted by the current
economic climate and some areas, such as annuity services revenues, have
improved year-on-year.
Separately, it is announced that Dean Douglas will become President and Chief
Executive of Westcon Group on 1 April 2009. Dean joined Westcon Group as Chief
Operating Officer in June 2008 and has held senior executive roles at Motorola
and IBM, as well as being Chief Executive of LCC International, Inc.
Jens Montanana, Chief Executive Officer said:
"The Group completed the year with improved working capital and a net cash
position, following strong cash generation in the second half, illustrating both
the defensive nature of our business model and the positive actions taken. We
plan to pay the same level of capital distribution for the year just completed,
reflecting confidence in our financial position, particularly when some parts of
the Group are performing with relative resilience in the downturn."
The Group now expects to release its preliminary results for the year ended 28
February 2009 on Thursday 14 May 2009.
The financial information on which this statement is based has not been reviewed
and reported on by Datatec`s auditors.
(1) The earnings per share and headline earnings per share ranges do not factor
in any fair value movements on put / call options for minority shareholders in
subsidiaries, which may be required under IFRS and are currently being assessed.
Further, the earnings per share range does not factor in any goodwill or
intangibles impairments which may be required under IFRS and are also currently
being assessed.
(2) Underlying earnings per share excludes goodwill and intangibles impairment,
amortisation of intangible fixed assets, profit or loss on sale of assets and
businesses, fair value movements on put/call options and unrealised foreign
exchange movements.
12 March 2009
Enquiries:
Datatec Limited (www.datatec.co.za)
Jens Montanana, Chief Executive Officer +44 (0) 1753 797118
Ivan Dittrich, Chief Financial Officer +27 11 233 1221
Wilna de Villiers, Group Marketing +27 11 233 1013
Manager
Jefferies International Limited
Chris Snoxall / Rupert Mitchell +44 (0) 20 7029 8000
College Hill
Adrian Duffield/Jon Davies (UK) +44 (0) 20 7457 2020
Fred Cornet / Hayley Crane (SA) +27 (0) 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), IT
infrastructure solutions and network integration (Logicalis) and strategic
telecommunications consulting (Analysys Mason). Datatec is registered in South
Africa and its shares are listed in Johannesburg and London.
Date: 12/03/2009 09:30:01 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. |