DTC - Datatec Limited - Interim Management Statement
20 July 2011 8:00
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 an   
IMS (Interim Management Statement) covering the period from 1 March 2011 to 30  
June 2011 ("the Period").                                                       
Group                                                                           
The Group`s trading and profitability are continuing to improve.  Revenues and  
operating profits in the Period have improved in comparison with the four months
ended 30 June 2010 ("the Comparative Period"). This is driven by the Group`s    
global diversification and broad business mix.                                  
Overall gross margins have improved and the Group continues to benefit from     
operating leverage.                                                             
Based on current exchange rates and trading conditions, the Group`s forecasts   
for the financial year ending 28 February 2012, remain unchanged.  The          
forecasts, published on 11 May 2011, are for revenues of between $4.8 billion   
and $5.1 billion, profit after tax** of approximately $84 million, underlying*  
earnings per share of approximately 47 US cents and earnings** and headline     
earnings** per share of approximately 42 US cents.                              
Jens Montanana, Chief Executive Officer said:                                   
"Our global diversity and broad business mix have continued to enable us to grow
revenues and improve margins, in line with our expectations, despite varying    
economic conditions around the world. South America and Asia remain Datatec`s   
strongest performing markets."                                                  
Westcon                                                                         
Westcon`s solid financial performance during the previous financial year has    
continued during the Period, with revenues and profitability showing an         
improvement over the Comparative Period. Gross margins have increased due to a  
more favourable product mix and operating margins have expanded.                
The best growth was achieved in Asia Pacific, AIME (Africa, India and Middle    
East) and Latin America. Trading in North America remained resilient, with a    
particularly notable contribution from Canada and solid gross margin improvement
in the US. Gross margins also improved in Europe.                               
Logicalis                                                                       
The steadily improving performance of Logicalis from the end of previous        
financial year has continued with revenues and gross profits improving over the 
Comparative Period. Operating margins increased due to good operating leverage. 
Growth was particularly strong in Latin America, primarily driven by increased  
capital investment by telecommunications service providers. Business remains    
satisfactory in the other regions. The UK is performing well, despite local     
economic weakness and good progress is being made in the US in new business     
segments. Asia is continuing to develop regionally with a joint venture         
initiative recently agreed in Indonesia with Metrodata, our local business      
partner.                                                                        
Consulting Services                                                             
Although trading conditions are showing signs of improvement, discretionary     
spending amongst this division`s corporate and telecommunications customer base 
remains constrained. Last year`s restructuring and repositioning actions have   
resulted in a much better performance by Analysys Mason.                        
Interim results                                                                 
The Group expects to release its interim results for the six months ending 31   
August 2011 on Wednesday 12 October 2011.                                       
The financial information on which this statement is based has not been reviewed
and reported on by Datatec`s auditors.                                          
* Underlying earnings per share excludes goodwill and intangibles impairment,   
amortisation of acquired intangible assets, profit or loss on sale of assets and
businesses, fair value movements on acquisition related financial instruments   
and unrealised foreign exchange movements.                                      
*Forecasts for profit after tax, earnings per share and headline earnings per   
share do not take into account any fair value gains or losses on acquisition    
related financial instruments (including put option liabilities) which are      
required under IFRS.                                                            
Enquiries:                                                                      
Datatec Limited  (www.datatec-group.com)                                        
                                                                                
Ivan Dittrich - Chief Financial Officer  +27 11 233 1221                        

Jefferies International Limited                                                 
Chris Snoxall /  Justin Matthews         +44  20 7029 8000                      
                                                                                
College Hill                                                                    
Adrian Duffield/Jon Davies               (UK) +44 20 7457 2020                  
Fred Cornet                              (SA) +27 11 447 3030                   
Sandown                                                                         
20 July 2011                                                                    
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 20/07/2011 08:00:01 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.