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.
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