DTC 201305150009A
Audited results for financial year ended 28 February 2013 and final cash distribution by means of capital reduction
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
Audited results for the financial year ended 28 February 2013 and final cash distribution by means of capital
reduction
Datatec Limited (Datatec or the Group, JSE and LSE: DTC), the international information and communications
technology (ICT) group, is today publishing its audited results for the financial year ended 28 February 2013.
Financial highlights
Revenue up 4% to $5,25 billion (2012: $5,03 billion)
EBITDA $185,5 million (2012: $190,2 million)
Cash generated from operations increased to $316,8 million (2012: $102,8 million)
Underlying* earnings per share 43,1 US cents (2012: 47,9 US cents)
Capital distribution up 6% to 17 US cents per share for the full year (2012: 16 US cents)
* Excluding goodwill and intangibles impairment, amortisation of acquired intangible assets, acquisition related
adjustments, profit or loss on sale of assets and businesses, fair value movements on acquisition-related financial
instruments and unrealised foreign exchange movements
Operational highlights
Group EBITDA performance impacted by weaker second half at Westcon
Acquisition of Afina further broadens Westcons geographic reach
Record financial performance from Logicalis - operating profit up 28%
Gross margin improvement continues
Current trading and prospects
US market showing signs of improvement
Westcon continuing to adapt to weaker environment
Robust performance expected to continue in Logicalis
2014 financial year forecast:
Revenues of between $5,6 billion and $5,9 billion (2013: $5,25 billion)
Underlying* earnings per share of approximately 50 US cents (2013: 43,1 US cents)
Jens Montanana, Chief Executive of Datatec, commented:
Last year presented contrasting trading periods and differing divisional achievement. In the first half we performed
well in most operations around the world and met our financial expectations. However, in the second half, Westcon
experienced a slowdown in revenues, particularly in Europe and North America. Logicalis, by contrast, continued to
perform strongly throughout the year especially in the UK and USA.
Our increase in capital distribution, despite the weaker second half and challenging trading environment, is a clear
demonstration of our confidence in the sustainability of our long term growth strategy.
In the current financial year, we anticipate another robust performance for Logicalis while Westcon will continue to
consolidate and focus on improving operational leverage.
PROFILE AND GROUP STRUCTURE
Datatec is a global ICT solutions and services group with more than 6,000 employees worldwide and with operations in
over 50 countries.
The Groups main lines of business comprise:
Technology - Westcon: distribution of networking, security and unified communications products
Integration - Logicalis: ICT infrastructure solutions and services
Consulting - Analysys Mason, Intact and The Via Group: strategic and technical consulting
OVERVIEW
Datatec generated modest top line growth despite the overall sluggishness of the world economy and a challenging
trading environment for Westcon in the second half. The overall resilience of the business has enabled the Group to
increase its full year capital distribution (effective dividend) by 6%.
Datatecs technology distribution division, Westcon, suffered from a slowdown in the second half of the year in Europe
and North America as conditions in those markets deteriorated. However, the broad geographic diversification of this
division partly mitigated the impact.
The Group benefited from its business diversification with Logicalis, the Groups integration and services division,
delivering its strongest performance to date. Overall, Latin America, Asia Pacific and the Middle East & Africa remain
the Groups strongest performing markets. These markets generated 36% (2012: 33%) of Datatecs revenues and 43% (2012:
40%) of its gross profits.
Datatec generated revenues of $5,25 billion, up 4% (2012: $5,03 billion). Overall gross margins expanded to 14,9%
(2012: 14,0%).
Reflecting the market conditions in H2, EBITDA for the year was $185,5 million (2012: $190,2 million).
Underlying earnings per share in FY13 were 43,1 US cents per share (2012: 47,9 US cents).
In terms of revenue by business stream, 73% (2012: 74%) came from technology distribution, 19% (2012: 18%) from
ICT Solutions (Logicalis product sales) and 8% (2012: 8%) from services (Logicalis and Consulting services).
In terms of gross margin, technology distribution contributed 57% (2012: 57%), ICT solutions 24% (2012: 24%) and
services 19% (2012: 19%).
STRATEGY
Datatec continues to pursue its long-term strategy to deliver sustainable, above average returns to shareholders by
focusing on a combination of organic growth in the faster-growing sectors of the ICT market, geographic expansion and
complementary acquisitions.
Datatec has maintained its strong market position with no particular dependency on any single market, territory or
technology sector and has also continued to improve its customer mix. The mid-term priority is focused on building our
scale and critical mass in the developing markets that the Group has moved into successfully in the past few years.
Westcons investment in new markets has now achieved a footprint in most of its desired geographies. Westcons most
significant acquisition in the year was Afina which greatly extended its geographical coverage in Latin America.
Logicaliss acquisition of the European 2e2 businesses after the end of the financial year is expected to boost
significantly its presence on the continent and the addition of the Spanish operation will complement its strong
presence in Latin America.
FINANCIAL RESULTS
Group revenues increased by 4% to $5,25 billion.
Revenue % geographic split
FY2013 FY 2012
North America 32% 34%
Latin America 16% 13%
Europe 32% 33%
Asia Pacific 12% 12%
AIME (#) 8% 8%
100% 100%
(#) Africa, India & Middle East
Gross margins improved to 14,9% (2012: 14,0%) and gross profit increased by 11% to $780,3 million (2012: $704,6
million). Operating costs grew at 16% to $594,8 million (2012: $514,4 million). Acquisitions, one off expenses relating
to Westcons SAP implementation and the second half revenue slowdown account for this higher rate.
Operating profit was $141,4 million (2012: $150,6 million). The net interest charge increased to $21,9 million (2012:
$14,3 million), mainly as a result of long credit terms agreed for some of the Groups Latin American business.
Profit before tax was $127,2 million (2012: $138,0 million), after net fair value gains of $6,4 million
(2012: $0,4 million) related to acquisitions.
The Groups reported effective tax rate decreased to 33,1% from 35,4%. The normalised effective tax rate was virtually
unchanged at 34,9% (2012: 35,1%). The Groups effective tax rate is higher than the South African statutory rate of
28%, primarily due to profits arising in jurisdictions with higher statutory tax rates, most notably North and Latin
America.
Underlying earnings per share were 43,1 US cents (2012: 47,9 US cents). Headline earnings per share (HEPS) were
40,8 US cents (2012: 43,1 US cents).
Westcon reduced is prompt pay initiatives in which it had been participating. This resulted in a
cash inflow of approximately $40 million which contributed to a $316,8 million operating cash inflow generated by the
Groups operations (2012: $102,8 million).
The Group ended the financial year with net cash of $47,6 million (2012: net debt $20,5 million), after deducting
long-term debt of $10,4 million and short-term debt of $15,3 million, included in the payables and provisions line.
The Group continues to enjoy comfortable headroom in its working capital lines.
The Group issued 5,9 million new shares during the year, with 4,1 million shares issued as part of acquisition
activities, 0,4 million shares were issued to satisfy exercised share options and 1,4 million shares were issued in
settlement of exercises of awards under Datatecs current long term incentive share based payment schemes.
The fair value of companies acquired during the year was $73,7 million. As a result goodwill, and intangible assets
increased by $57,6 million and $25,4 million respectively. The revenue and EBITDA included from these acquisitions in
2013 was $182,8 million and $1,6 million respectively. Had the acquisition dates been 1 March 2012, revenue attributable
to these acquisitions would have been approximately $268 million. It is not practical to establish the EBITDA that would
have been contributed by the acquisitions in 2013 if they had been included for the entire year.
The Group paid $17,2 million to shareholders as a capital distribution in July 2012 as the final distribution of the
2012 financial year, making the total cash distributed in relation to FY12 $29,4 million. The Group paid the interim
capital distribution for the 2013 financial year to shareholders in November 2012 of $15,2 million and has declared a
final capital distribution for FY13.
The put option liability for Westcon Africa FZCO (FZCO) of $5,1 million was reversed to reserves during the first
half of the year pursuant to the cancellation of the put option.
Losses of $45,9 million (2012: $13,8 million) arising on translation to presentation currency are included in
comprehensive income of $50,4 million (2012: $77,0 million).
DIVISIONAL REVIEWS
Group contribution to Revenue
FY 2013 FY 2012
Westcon 73% 74%
Logicalis 26% 25%
Consulting 1% 1%
100% 100%
Group contribution to EBITDA
FY 2013 FY 2012
Westcon 59% 65%
Logicalis 40% 33%
Consulting 1% 2%
100% 100%
Westcon
Westcon accounted for 73% of the Groups revenues (2012: 74%) and 59% of its EBITDA (2012: 65%).
Westcon is a value-added distributor of category-leading unified communications, network infrastructure, data centre
and security solutions with a global network of specialty resellers. The distributors portfolio of vendors include
Cisco, F5, Avaya, Brocade, Check Point, Blue Coat, Juniper and other complementary manufacturers.
Westcon creates unique programmes and facilitates support to accelerate the business of its partners tailored to their
needs. Westcon provides global logistics and flexible customized financing solutions to pre-sales, technical and
engineering assistance.
Overall revenues increased 3% to $3,8 billion (2012: $3,7 billion) including a $174,3 million contribution from
acquisitions.
34% of Westcons revenue was generated in Europe (2012: 35%), 33% in North America (2012: 35%), 13% in Asia Pacific
(2012: 13%), 10% in AIME (2012: 11%) and 10% in Latin America (2012: 6%).
Gross margins increased to 11,6% (2012: 10,7%) with increases in Europe, AIME and Asia Pacific offset by lower margins
in North America and Latin America. Overall gross margins improved as a result of a more favourable product mix, which
saw Cisco products make up 49% of Westcons revenue (2012: 51%), 12% for Avaya / Nortel (2012: 15%), 24% for security
(2012: 19%) and 15% for Affinity and other development vendors (2012: 15%). Gross profit increased 11% to $442,8 million
(2012: $399,6 million).
Operating expenses were $325,5 million (2012: $266,3 million), including $31 million of expense associated with
acquisitions and $6 million associated with ongoing SAP implementation. Westcons EBITDA was $117,3 million (2012: $133,3
million) while EBITDA margins were 3,1% (2012: 3,6%), with decreased margins in North America and Asia Pacific offset by
increases in Europe, Latin America and AIME.
Operating profit was $98,2 million (2012: $120,4 million).
Westcon continued its strong working capital management. Westcons net working capital days decreased from 38 days in
2012 to 27 days in 2013. Net debt decreased by $32 million, resulting in a net debt position of $24 million at the
year end as decreased working capital needs resulted in a reduction in debt balances and improved cash position. Both
trade receivables and payables balances increased due to the Afina acquisition, growth in Latin America and a reduction
in prompt payment arrangements.
On 12 March 2012, Westcon completed the acquisition of PT Netpoleon, an Indonesian value-added distributor of IT
security, networking and convergence solutions and provider of managed and training services.
On 23 May 2012, Datatec acquired, on behalf of Westcon, the 33,1% interest in its African subsidiaries which it did
not already own (excluding Westcon SA (Pty) Ltd) collectively Westcon Africa in order to secure 100% ownership
of those businesses.
On 2 July 2012, Westcon acquired the Latin American and Iberian multinational security, virtualisation and data centre
distributor, Afina Group. The transaction, valued at up to 50 million ($63 million) was the most significant
acquisition made during the year. Afina generated revenues in FY13 (in the eight months since acquisition) of $148 million.
On 16 July 2012, Westcon acquired a security product distribution business based in Austria, Triple AcceSSS IT
together with its Swiss subsidiary. Triple AcceSSS generated revenues in FY13 since acquisition of $9 million.
Westcon is in the process of transitioning its existing global ERP system to a new SAP-based platform. The upgrade is
part of a programme to improve and optimise Westcons systems and infrastructure capabilities in support of its growing
business and increasing transaction volumes. Of this years increase in capitalised development expenditure, $18 million
is attributable to this ERP system transition.
Westcon revenue % geographic split
FY 2013 FY 2012
North America 33% 35%
Latin America 10% 6%
Europe 34% 35%
Asia Pacific 13% 13%
AIME 10% 11%
100% 100%
Westcon revenue % by product category
FY 2013 FY 2012
Cisco 49% 51%
Convergence 12% 15%
Security 24% 19%
Other 15% 15%
100% 100%
The acquisition of Comztek in South Africa, which was announced on 30 November 2012 is conditional on receiving
approval from the competition authorities in a number of African countries which is substantially complete. The
transaction is expected to close when the last of these approvals is received.
Westcon remains in discussion with its Indian partners about a mutually agreed exit from the venture.
Logicalis
Logicalis accounted for 26% of the Groups revenues (2012: 25%) and 40% of its EBITDA (2012: 33%).
Logicalis is an international IT solutions and managed services provider with a breadth of knowledge and expertise in
IT infrastructure and networking solutions, communications and collaboration, data centre and cloud services, and
managed services.
Logicalis revenue % geographic split
FY 2013 FY 2012
North America 31% 31%
Latin America 36% 36%
Europe 24% 25%
Asia Pacific 9% 8%
100% 100%
Revenue increased by 9% to $1,35 billion (2012: $1,23 billion), including $8,5 million of revenue from the
acquisitions made during the year.
Revenues were sequentially 2% lower in the second half on lower product revenues after a strong first half that
included two very large transactions. However the gross margin on product revenues improved in the second half of the
financial year and profits were significantly higher than in the first half.
All regions saw solid year on year growth and the performances of the UK and North America were particularly
encouraging given the broader macroeconomic situation. The Latin America region continued to have strong growth
although the reported results are held back by the strengthening of the US dollar against the Brazilian Real in
particular.
Revenues from product sales were up 8%, with increases in the Cisco, IBM and HP vendor categories. Revenues from
total services were up 14% with annuity service revenues up 15% and reflected the long-term strategic focus on
growing services.
36% of Logicalis revenue was generated in Latin America (2012: 36%), 31% in North America (2012: 31%), 24% in Europe
(2012: 25%) and 9% in Asia Pacific (2012: 8%).
Gross margin was up at 23,0% (2012: 22,5%). Product transaction margins improved but overall service margins were down
slightly. The gross profit was up 12% to $310,3 million (2012: $277,4 million) and operating expenses increased by 10%.
EBITDA increased 17% to $78,6 million (2012: $67,4 million), resulting in an EBITDA margin of 5,8% (2012: 5,5%).
Operating profit was up 28% to $54,7 million (2012: $42,6 million).
Logicalis continues to have a contingent liability in respect of a possible tax liability at its PromonLogicalis
subsidiary in Brazil.
On 1 June 2012, Logicalis acquired Corpnet, an Australian provider of IT solutions including data centre, cloud and
managed services.
On 1 November 2012, Logicalis acquired the Colombia and Ecuador operations of Cibercall, a leading provider of voice,
data and video services solutions with 44 employees which were integrated into Logicalis existing operations in those
two countries strengthening Logicalis presence in the Andean region.
After the year end, on 4 March 2013, Logicalis acquired four European operations of 2e2 for 24 million ($31
million).
Consulting Services
The Consulting Services division accounted for 1% of Group revenues (2012: 2%) and 1% of EBITDA (2012: 2%).
The division comprises: Analysys Mason, which delivers management consulting, advisory, modelling and market
intelligence services to the telecoms, IT and digital media industries; Intact, which is a services and support consultancy
delivering high-end professional services in networking, unified communications, and related security, wireless and data
centre connectivity focussing on Cisco technologies; and The Via Group, which is a specialist professional services
organisation providing unified communications and integrated voice solutions that encompass Microsoft technology.
Divisional revenues were $74,0 million (2012: $79,4 million). A robust performance from Analysys Mason and the full
year inclusion of Via was offset by a contraction of revenues at Intact. Despite the lower revenues, strong sales
performance at Analysys Mason, better utilisation of consultants and internal restructuring helped to improve gross margins
from 34,6% to 36,8%. Overall EBITDA was $3,2 million (2012: $4,8 million) after $0.5 million charge for restructuring
activities which are expected to yield annualised savings of $1,9 million.
Corporate
Corporate encompasses the net operating costs of the Datatec head office entities of $14,3 million (2012: $17,1
million) and unrealised and realised foreign exchange gains of $0,5 million and $0,2 million respectively (2012:
$0,2 million and $1,6 million respectively).
POST PERIOD EVENTS
On 4 March 2013, Logicalis acquired four European operations of 2e2, excluding its UK business, for 24 million ($31
million). These include Spanish and Irish systems integration businesses, a Channel Islands business and an operation in
the Netherlands, which is a leading IT service management consultancy. As a result of this transaction, Logicalis
expects to add annual revenues of approximately $150 million.
CURRENT TRADING AND PROSPECTS
Weak economic conditions continue to prevail in most of Datatecs markets. Companies remain cautious about
investment, generally have strong balance sheets and are mainly focused on IT projects with compelling return on investment.
The cloud computing model is driving growth in many of the sectors in which the Group operates, such as data centre and
networking managed services, the integration of unified communications systems and security solutions. Conditions in Europe
remain weak with modest growth in the US.
The Board expects Westcon to return to revenue growth with operating leverage returning in the 2014 financial year.
Logicalis is on track to record its fifth successive year of strong revenue and profit growth.
Based on current trading conditions and prevailing exchange rates, the Board expects revenues for the 2014 financial
year of between $5,6 billion and $5,9 billion. The Board expects underlying* earnings per share to be approximately 50 US
cents and both earnings per share** and headline earnings per share** to be approximately 46 US cents. Profit after
tax** is expected to be approximately $102 million.
The financial information on which this forecast is based has not been reviewed and reported on by Datatecs external
auditors.
CASH DISTRIBUTION BY WAY OF CAPITAL REDUCTION
The Group has a dividend cover policy of at least three times relative to underlying* earnings per share which applies
to both interim and final distributions. However, the Group Board has elected to maintain its final capital
distribution for the year due to its strong financial position and prospects.
The Group paid an interim capital distribution in respect of FY13 to shareholders of 70 RSA cents (approximately 8 US
cents, 2012: 7 US cents) per share on 3 December 2012. The Group has declared and will distribute to shareholders a
final capital reduction in lieu of a dividend out of Contributed Tax Capital of 83 RSA cents (approximately 9 US cents,
2012: 9 US cents) per share, making a total capital distribution to shareholders for the financial year ended 28 February
2013 of 153 RSA cents (approximately 17 US cents 2012: 16 US cents) per share.
The salient dates will be as follows:
Last day to trade Friday, 5 July 2013
Shares to commence trading ex the distribution Monday, 8 July 2013
Record date Friday, 12 July 2013
Payment date Monday, 15 July 2013
The final capital distribution will be paid to shareholders on the Jersey branch register in GBP translated at the
closing exchange rate on Wednesday, 10 July 2013.
Share certificates may not be dematerialised or rematerialised between Monday, 8 July 2013 and Friday, 12 July 2013,
both days inclusive.
DIRECTORATE
Rob Evans was appointed as a Director of the Board of Datatec with effect from 1 may 2012 and became Chief Financial
Officer on 1 June 2012 replacing Ivan Dittrich who left the Board on the same day.
The Chairman of the Board, Stephen Davidson, was formally reappointed as a member of the Audit Committee on 13 May 2013.
REPORTING
The abridged financial information has been prepared in accordance with the framework concepts and the measurement and
recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and the information as required by IAS 34: Interim Financial Reporting and the
Companies Act of South Africa.
The report has been prepared using accounting policies that comply with IFRS which are consistent with those applied in
the financial statements for the year ended 28 February 2012. The preparation of the Group financial statements for the
financial year ended 28 February 2013 was supervised by the Chief Financial Officer, Rob Evans; and has been audited in
terms of all the applicable requirements of Section 29(1) of the Companies Act of South Africa.
The auditors, Deloitte & Touche, have issued their opinion on the Groups financial statements for the year ended 28
February 2013. The audit was conducted in accordance with International Standards on Auditing. They have issued an
unmodified audit opinion. A copy of their audit report is available for inspection at the Companys registered office.
These abridged financial statements have been derived from the consolidated financial statements and are consistent in
all material respects, with the Group financial statements. Any reference to future financial performance included in
this announcement, has not been reviewed or reported on by the Companys auditors. The auditor's report does not necessarily
cover all the information contained in this announcement. Shareholders are therefore advised that in order to obtain a
full understanding of the nature of the auditor's work they should obtain a copy of that report together with the
accompanying financial information from the registered office of the Company.
On behalf of the Board:
SJ Davidson JP Montanana RP Evans
Chairman Chief Executive Officer Chief Financial Officer
15 May 2013
*Excluding goodwill and intangibles impairment, amortisation of acquired intangible assets, acquisition-related
adjustments, 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.
Condensed Group statement of comprehensive income
for the year ended 28 February 2013 Audited Audited
year ended year ended
February 2013 February 2012
US$000 US$000
Revenue 5 246 667 5 033 394
Existing operations 5 063 855 4 940 164
Acquisitions 182 812 93 230
Cost of sales (4 466 333) (4 328 814)
Gross profit 780 334 704 580
Operating costs (593 151) (514 974)
Unrealised foreign exchange (losses)/gains (1 645) 585
Operating profit before finance costs, depreciation and amortisation ("EBITDA") 185 538 190 191
Depreciation (28 657) (23 861)
Amortisation of acquired intangible assets (15 508) (15 686)
Operating profit 141 373 150 644
Interest income 5 086 7 623
Financing costs (26 993) (21 905)
Acquisition-related fair value adjustments 6 443 402
Fair value movements on put option liabilities (505) 16
Fair value adjustments on deferred purchase consideration 6 948 386
Share of equity-accounted investment earnings 1 078 425
Other income 260 782
Profit before taxation 127 247 137 971
Taxation (42 163) (48 902)
Profit for the year 85 084 89 069
Other comprehensive income
Exchange differences arising on translation to presentation currency (45 925) (13 778)
Translation of equity loans net of tax effect 11 260 4 615
Other items - (2 856)
Total comprehensive income for the year 50 419 77 050
Profit for the year attributable to:
Owners of the parent 78 077 80 846
Non-controlling interests 7 007 8 223
85 084 89 069
Total comprehensive income attributable to:
Owners of the parent 48 555 72 282
Non-controlling interests 1 864 4 768
50 419 77 050
Number of shares issued (millions)
Issued 193 188
Weighted average 191 186
Diluted weighted average 193 189
Earnings per share ("EPS") (US cents)
Basic EPS 40,8 43,5
Diluted basic EPS 40,4 42,8
SALIENT FINANCIAL FEATURES
Headline earnings 78 071 80 188
Headline earnings per share (US cents)
Headline 40,8 43,1
Diluted headline 40,4 42,5
Underlying earnings 82 424 89 166
Underlying earnings per share (US cents)
Underlying 43,1 47,9
Diluted underlying 42,6 47,2
Net asset value per share (US cents) 448,2 438,6
KEY RATIOS
Gross margin (%) 14,9 14,0
EBITDA (%) 3,5 3,8
Effective tax rate (%) 33,1 35,4
Normalised effective tax rate (%) 34,9 35,1
Exchange rates
Average Rand/US$ exchange rate 8,4 7,3
Closing Rand/US$ exchange rate 8,8 7,5
Condensed Group statement of financial position
as at 28 February 2013 Audited Audited
year ended year ended
February 2013 February 2012
US$000 US$000
ASSETS
Non-current assets 661 324 574 970
Property, plant and equipment 62 476 55 145
Capitalised development expenditure 49 599 34 117
Goodwill 426 622 377 869
Acquired intangible assets 50 684 41 772
Investments 6 613 5 709
Deferred tax assets 49 961 37 229
Other receivables and prepayments 15 369 23 129
Current assets 2 028 740 1 823 437
Inventories 362 172 412 115
Current tax asset 18 586 -
Trade and other receivables 1 334 136 1 163 534
Cash and cash equivalents 313 846 247 788
Total assets 2 690 064 2 398 407
EQUITY AND LIABILITIES
Ordinary shareholders' funds 865 433 823 369
Non-controlling interest 51 578 56 059
Total equity 917 011 879 428
Non-current liabilities 84 324 66 083
Long-term liabilities 10 419 13 915
Amounts owing to vendors 3 050 2 057
Liability for share-based payments 12 317 10 423
Deferred tax liabilities 57 147 39 688
Other liabilities 1 391 -
Current liabilities 1 688 729 1 452 896
Payables and provisions 1 417 181 1 187 967
Amounts owing to vendors 9 649 14 327
Current tax liabilities 21 369 4 627
Bank overdrafts 240 530 245 975
Total equity and liabilities 2 690 064 2 398 407
Capital expenditure incurred in the current year
(including capitalised development expenditure) 45 523 43 053
Capital commitments at the end of the year 13 283 10 142
Lease commitments at the end of the year 99 275 98 213
Payable within one year 31 095 27 516
Payable after one year 68 180 70 697
Condensed Group statement of cash flows
for the year ended 28 February 2013 Audited Audited
year ended year ended
February 2013 February 2012
US$000 US$000
EBITDA 185 538 190 191
Profit on disposal of property, plant and equipment (13) (733)
Non-cash items 6 539 (832)
Cash generated before working capital changes 192 064 188 626
Working capital changes 124 702 (85 783)
Decrease/(increase) in inventories 45 321 (109 479)
Increase in receivables (125 387) (188 004)
Increase in payables 204 768 211 700
Cash generated from operations 316 766 102 843
Net finance costs paid (21 907) (14 282)
Taxation paid (53 195) (55 619)
Net cash inflows from operating activities 241 664 32 942
Cash outflows for acquisitions (74 509) (27 521)
Net cash outflows from other investing activities (44 896) (42 943)
Net cash inflows from disposal of operations and investments - 14 988
Net cash outflows from other financing activities (13 664) (27 684)
Capital distributions (32 394) (36 383)
Net increase/(decrease) in cash and cash equivalents 76 201 (86 601)
Cash and cash equivalents at the beginning of the year 1 813 83 219
Translation differences on opening cash position (4 698) 5 195
Cash and cash equivalents at the end of the year (*) 73 316 1 813
(*) Comprises cash resources, net of bank overdrafts and trade finance advances.
Condensed Group statement of changes in total equity
for the year ended 28 February 2013 Audited Audited
year ended year ended
February 2013 February 2012
US$000 US$000
Balance at the beginning of the year 879 428 770 379
Total comprehensive income 50 419 77 050
New share issues 29 508 3 545
Capital distributions (32 394) (36 383)
Equity-settled deferred purchase consideration (3 333) 6 667
Share-based payments (6 227) (165)
Derecognition of put option liability 5 102 45 000
Acquisitions 853 (815)
Disposals - 5 536
Non-controlling interest (6 345) 8 614
Balance at the end of the year 917 011 879 428
Determination of headline and underlying earnings
for the year ended 28 February 2013 Audited Audited
year ended year ended
February 2013 February 2012
US$000 US$000
Profit attributable to the equity holders of the parent 78 077 80 846
Headline earnings adjustments
Profit on disposal of property, plant and equipment and investments (13) (733)
Tax effect 8 75
Non-controlling interest (1) -
Headline earnings 78 071 80 188
DETERMINATION OF UNDERLYING EARNINGS
Underlying earnings adjustments 10 710 14 459
Unrealised foreign exchange losses/(gains) 1 645 (585)
Acquisition-related fair value adjustments (6 443) (402)
Acquisition-related adjustment - (240)
Amortisation of acquired intangible assets 15 508 15 686
Tax effect (6 460) (5 472)
Non-controlling interest 103 (9)
Underlying earnings 82 424 89 166
Segmental analysis
for the year ended 28 February 2013 Audited Audited
year ended year ended
February 2013 February 2012
US$000 US$000
Revenue
Westcon 3 822 193 3 719 636
Logicalis 1 350 442 1 234 334
Consulting Services 74 032 79 424
Revenue 5 246 667 5 033 394
EBITDA
Westcon 117 320 133 257
Logicalis 78 593 67 395
Consulting Services 3 174 4 778
Corporate (13 549) (15 239)
EBITDA 185 538 190 191
Operating profit
Westcon 98 200 120 360
Logicalis 54 697 42 609
Consulting Services 2 081 3 331
Corporate (13 605) (15 656)
Operating profit 141 373 150 644
Total assets
Westcon 1 864 079 1 529 565
Logicalis 769 075 801 493
Consulting Services 48 813 53 527
Corporate 8 097 13 822
Total assets 2 690 064 2 398 407
Enquiries:
Jens Montanana, Chief Executive Officer +44 (0) 1753 797 118
Rob Evans, Chief Financial Officer +44 (0) 20 7395 9012
Wilna de Villiers, Group Marketing Manager +27 (0) 11 233 1013
Jefferies Hoare Govett - Nominated Advisor and Broker
Nick Adams/ Alex Collins +44 (0) 20 7029 8000
finnCap - Broker
Tom Jenkins / Henrik Persson +44 (0) 20 7220 0500
College Hill
Adrian Duffield / Rozi Morris (UK) +44 (0) 20 7457 2020
Frederic Cornet / Morne Reinders (SA) +27 (0) 11 447 3030
Datatec Limited (www.datatec.co.za)
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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