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
("Datatec")
Interim Management Statement
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international
Information and Communications Technology (ICT) group, is today publishing its
Interim Management Statement (IMS), covering the period from 1 March 2009 to 30
June 2009 ("the period").
Group
The broad diversity of the Group`s revenue sources in terms of geography,
technology and operations has underpinned trading for the period which has
continued to be resilient. Although the overall economic conditions continue to
be tough around the world, they do not appear to have deteriorated further from
the end of last year.
Westcon`s performance in particular has exceeded the Board`s expectations.
However, as previously stated in the 2009 full year results, the continuing soft
market conditions in the US and UK will impact the performance of Logicalis for
the first half of the current financial year, compared to the first half of last
year, as anticipated.
Westcon and Westcon Emerging Markets
The performance of Westcon so far in this financial year has been better than
the last few months of the previous financial year. The first quarter compared
to the third and fourth quarters of the 2009 financial year has shown sequential
improvement in operating performance with stable gross margins, EBITDA margin
expansion and improved profitability. Trading in the Americas has improved
modestly, with conditions in Europe remaining stable and performance of the Asia
Pacific region still strong.
Westcon`s Emerging Markets business is now profitable at the EBITDA level and is
expected to continue to improve.
Westcon`s strong working capital and operating cash flow management has
continued during the period.
Datatec is particularly encouraged by Westcon`s performance, as distribution
businesses correlate directly to short term changes in overall IT capital
equipment expenditure. The Group expects Westcon`s financial performance to
continue to improve for the remainder of this year particularly as this business
will benefit strongly from the high operational gearing that now exists as a
result of the significantly reduced cost base.
Logicalis
Challenging conditions in the US have impacted the Logicalis business, while
trading in the UK has also softened, albeit to a lesser extent. Both these
markets have been affected by larger projects being delayed and the resultant
impact on attached services. Trading and profitability in South America remain
robust and in line with expectations, countering to some extent the more
challenging environment in the US and the UK. Overall operating costs remain
tightly controlled in this division.
Consulting Services
Trading has been tougher so far this year, resulting from a deterioration in
demand for strategic consulting services, primarily in the Analysys Mason
business. Additional cost reductions have been made to improve profitability.
The Intact business is performing well.
Preliminary results
The Group expects to release its interim results for the six months to 31 August
2009 on Wednesday 14 October 2009.
The financial information on which this statement is based has not been reviewed
and reported on by Datatec`s auditors. This statement does not constitute a
trading statement in terms of the JSE Limited Listings Requirements.
Enquiries:
Datatec Limited
www.datatec.co.za)
Jens Montanana, Chief Executive Officer +44(0) 1753 797 118
Ivan Dittrich, Group Finance Director +27 (0) 11 233 1221
Wilna de Villiers, Group Marketing Manager +27(0)11 2331013
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
13 July 2009
Sandown
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 13/07/2009 08:00:01 Produced by the JSE SENS Department.
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