DATATEC LIMITED - Unaudited half year results and cash dividend declaration
16 October 2013 8:00
DTC 201310160002A
Unaudited half year results and cash dividend declaration

Datatec Limited                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
  
Unaudited half year results and cash dividend declaration

Datatec Limited (Datatec or the Group, JSE and LSE: DTC, 
Registration number: 1994/005004/06, ISIN: ZAE000017745), the 
international Information and Communications Technology (ICT) group, 
is today publishing its unaudited half year results for the six 
months ended 31 August 2013 (the Period).

Financial highlights
 Group revenue $2,77 billion (H1 FY13: $2,62 billion)
 Gross margin expands to 15,0% (H1 FY13: 14,4%)
 EBITDA $89,2 million (H1 FY13: $91,9 million)
 Underlying* earnings per share 19,2 US cents (H1 FY13: 23,5 US cents)
 Interim capital distribution maintained at 8 US cents per share (H1 FY13: 8 US cents)

Operational highlights
 Westcons contribution continues to be impacted by roll-out of ERP system 
 Anticipated growth in the US did not materialise
 Logicalis delivered another very strong performance - operating profit up 45% to $32,7 million 
  (H1 FY13: $22,6 million)  
 Currency weakness in many countries has impacted market demand 
                        
Current trading and prospects
 Cautious outlook for second half of FY14 in light of Westcons performance
 Revised 2014 financial year forecast:
 - Revenues between $5,6 billion and $5,8 billion (FY13: $5,25 billion)
 - Underlying* earnings per share similar to FY13, approximately 43 US cents per share. 

*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


Performance in parts of Westcons North American business, where the new ERP system has been 
implemented, has been disappointing.  The volume shortfall in that region has been the main reason 
for the Groups underperformance in the Period. 
Logicalis continues to execute strongly and in line with our expectations; Analysys Mason has 
also performed well.
We are experiencing varying trading conditions in many parts of the world with Europe recently 
showing signs of improvement, while developing markets have been impacted by currency volatility.
Our confidence in our long term strategy has enabled us to maintain the interim dividend (capital
distribution).
Jens Montanana, Chief Executive Officer


Enquiries

Datatec Limited (www.datatec-group.com)	
Jens Montanana, Chief Executive Officer			+44 (0) 1753 797 118
Rob Evans, Chief Financial Officer			+44 (0) 207 395 9012
Wilna de Villiers, Group Marketing Manager		+27 (0) 11 233 1013
	
Jefferies Hoare Govett  Nominated Adviser and Broker	
Nick Adams/Alex Collins					+44 (0) 207 029 8000
	
finnCap  Broker	
Tom Jenkins/Henrik Persson				+44 (0) 207 220 0500
	
College Hill 	
Adrian Duffield/Rozi Morris (UK)			+44 (0) 207 457 2020
Frederic Cornet/ Lexi Ball (SA)				+27 (0) 11 447 3030


GROUP STRUCTURE
Datatec Group is a global provider of ICT products, solutions and services, with more than 6,500 
people worldwide and with operations in over 50 countries. 

The Groups main lines of business comprise: 
 Technology division: global distribution of advanced networking, security and unified 
communications products (Westcon)
 Integration division: ICT infrastructure solutions and services (Logicalis) 
 Consulting division: strategic and technical consulting (Consulting Services) 
Corporate encompasses the costs of the Groups head office entities.

OVERVIEW 
Datatec achieved modest revenue growth with expanding gross margins in the six months ended 
31 August 2013. 

Across the Group the US market did not grow as much as anticipated.

Westcons performance in the Period was disappointing, impacted adversely by the ERP system roll 
out in North America which had a big effect on transaction volumes. 

Logicalis performed very well, in line with managements expectations and benefitted from the 
acquisition of the European operations of 2e2 in March 2013.

Latin America continues to be the Groups strongest performing region. There have been signs of 
nascent economic recovery in Europe, however, the market there remains weak. In many other markets 
currency  fluctuations contributed to a mixed performance. 

The rest of the world outside North America and Europe now generates 39% of Datatecs revenues 
and 44% of the Groups gross profits, compared with 35% of revenue and 41% of gross profits in 
the Comparative Period.

Group revenues increased 6% to $2,77 billion (H1 FY13: $2,62 billion), of which some 71% came 
from Westcon; 28% from Logicalis and 1% from Consulting Services. 

Overall Group gross margins expanded to 15,0% (H1 FY13: 14,4%). EBITDA was $89,2 million 
(H1 FY13: $91,9 million) while underlying* earnings per share are 19,2 US cents (H1 FY13: 23,5 
US cents).

STRATEGY AND ACQUISITIONS
Datatec has a strong market position with no particular dependency on any single market, territory 
or technology sector. The Group 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 earnings-enhancing acquisitions.

During the first half of FY14 the Group made two acquisitions.

On 4 March 2013, Logicalis acquired the European operations of 2e2 in Spain, Ireland, Channel Islands 
and Netherlands for $31 million.
            

On 31 May 2013, Datatec completed the acquisition of Comztek, a South Africa based ICT distribution group
with operations in a range of African countries.  The integration of Comztek into the Westcon South Africa
business, which Datatec owns jointly with its BEE partner MIC, is now in progress.

On 31 August 2013, Westcon completed the sale of its 54% holding in Inflow Technologies following Datatecs
decision to exit the distribution market in India in May.

The Group will continue to seek to improve its competitive position.  It believes that the prevailing
economic climate continues to provide attractive opportunities to enhance margins, to facilitate 
consolidation in proven markets and to extend the Groups geographical reach.

FINANCIAL RESULTS
Group revenues increased by 6% to $2,77 billion (H1 FY13: $2,62 billion) with 27% of Group revenue 
generated from North America (H1 FY13: 34%), 34% from Europe (H1 FY13: 31%), 18% from Latin America 
(H1 FY13: 14%), 11% from Asia Pacific (H1 FY13: 13%) and 10% from Africa, India and Middle East 
(AME) (H1 FY13: 8%).

Gross margins improved to 15,0% (H1 FY13: 14,4%). Gross profit increased by 10% to $413,5 million 
(H1 FY13: $377,0 million), while operating costs increased at a higher rate of 14,0% to $324,3 million 
(H1 FY13: $285,1 million).

EBITDA was $89,2  million (H1 FY13: $91,9 million), which includes net unrealised foreign exchange gains 
of $0,2 million (H1 FY13: losses of $0,5 million). Depreciation was $15,3 million (H1 FY13: $13,7 million).
Amortisation of intangible fixed assets arising from acquisitions was $6,9 million (H1 FY13: $7,2 million). 

The fair value of companies acquired during the year was $40,1 million. As a result, goodwill and intangible
assets increased by $11,8 million and $9,5 million respectively. The revenue and EBITDA included from these
acquisitions in H1 FY14 was $90,4 million and $2,3 million respectively; with an after tax loss of $0,4
million. Had the acquisition dates been 1 March 2013, revenue in H1 FY14 attributable to these acquisitions 
would have been approximately $113,6 million. It is not practical to establish the EBITDA that would have 
been contributed by the acquisitions in H1 FY14 if they had been included for the entire period.

Operating profit was $67,0 million (H1 FY13: $71,0 million). The net interest charge decreased to $10,4
million (H1 FY13: $11,4 million) as a result of improved funding levels for working capital in Logicalis
Brazilian business and the cessation of prompt pay arrangements in parts of the Westcon business. 

Profit before tax was $57,7 million (H1 FY13: $60,4 million). 

The Groups reported effective tax rate for H1 FY14 is 31,2% (H1 FY13: 31,6%). The Groups effective tax
rate is higher than the South African rate of 28% due to the profits arising in jurisdictions with higher 
tax rates, in particular North and Latin America. 

The decrease in the effective tax rate in the current half year is due mainly to lower effective rates in
North and Latin America and a reduced statutory rate in the UK. The effective tax rate for the financial 
year ending 28 February 2014 is expected to be 34,0% (FY13: 34,9%).

Underlying* earnings per share were 19,2 US cents (H1 FY13: 23,5 US cents). Headline earnings per share
(HEPS) were 18,2 US cents (H1 FY13: 20,7 US cents).

The Groups operations utilised $19,1 million cash during the Period (H1 FY13: $57,8 million cash generated
from operations).

The Group ended the Period with net debt of $56,7 million (H1 FY13: $135,5 million), after deducting
long-term debt of $20,2 million and short-term debt of $19,2 million, included in the payables and provisions 
line on the statement of financial position. The Group continues to enjoy comfortable headroom in terms of 
its working capital lines.

The Group issued 4,1 million new shares. Of this 3,4 million shares were issued as part of consideration 
for acquisitions, while a further 0,7 million shares were issued to settle commitments under the terms 
of Datatecs equity-settled share-based remuneration schemes. 

The Group paid $16,2 million to shareholders during H1 FY14 as a final capital distribution relating to
FY13, bringing the total capital distribution for FY13 to $31,4 million. 


DIVISIONAL REVIEWS

Westcon 
Westcon accounted for 71% of the Groups revenues (H1 FY13: 73%) and 50% of its EBITDA (H1 FY13: 63%).

Westcon is the worlds leading specialty distributor in networking, security, mobility and convergence for
leading technology vendors, including Cisco, Avaya, Check Point, Brocade, Polycom and other complementary
manufacturers. Through its Comstor Cisco-dedicated business unit and Westcon Convergence and Westcon 
Security divisions, Westcon sells products and services to resellers, systems integrators and service 
providers.

Westcon has expertise in the convergence of voice, data and video applications and technologies, 
security for networking and communications systems, data centre technologies, videoconferencing and 
wireless connectivity.

Westcon had a challenging first half of FY14 as a result of the impact of the ERP implementation on its
North American business and mixed trading conditions across its geographic markets.  Overall revenues 
increased 3% to $1,96 billion (H1 FY13: $1,90 billion) with increases in Latin America, Europe and AME 
offset by lower sales in Asia Pacific and a significant decrease in North America. 
 
Westcon acquisitions contributed $32,0 million in revenue.

Of Westcons revenue, 35% was generated in Europe (H1 FY13: 33%), 28% in North America (H1 FY13: 34%), 
12% in Asia Pacific (H1 FY13: 14%), 14% in AME (H1 FY13: 11%) and 11% in Latin America (H1 FY13: 8%).

Gross margin of 11,3% was consistent with H1 FY13 as margin pressures in Latin America, AME and Europe 
were offset by margin expansion in North America and Asia Pacific. A decrease in early payment discount 
for Cisco product in Europe was offset by a favourable product mix.  

The share of lower-margin Cisco products decreased to 48% of Westcons revenue (H1 FY13: 51%) followed 
by 12% for Avaya/Nortel (H1 FY13: 13%), 26% for security (H1 FY13: 20%) and 14% for Affinity/other 
development vendors (H1 FY13: 16%). Gross profit increased 4% to $222,2 million (H1 FY13: $214,0 million). 

Westcons EBITDA decreased to $45,7 million (H1 FY13: $62,1 million) while EBITDA margin was 2,3% 
(H1 FY13: 3,3%). Operating profit was $35,0 million (H1 FY13: $53,4 million). 

Westcons net working capital days improved eleven days on the strength of increased payables compared 
with 31 August 2012 and over the same period net debt improved by $60 million.

Westcon is in the process of transitioning its existing global ERP system to a new platform. The upgrade 
is part of a multi-year programme to improve and optimise Westcons systems and infrastructure 
capabilities. To date it has been only implemented in North America. All other regions are operating on 
legacy systems. 

The transition in North America has caused operating disruptions which have adversely impacted revenues,
particularly in the high volume transaction business.  The roll-out schedule has been adjusted and the 
amount of disruption is expected to decline.

Market conditions are expected to remain challenging in the second half of the year in the mature 
markets of Europe and particularly North America. Despite the difficult trading environment, Westcon 
management expects to leverage certain vendor relationships to deliver an improved performance in the 
second half of FY14. 


Logicalis
Logicalis accounted for 28% of the Groups revenues (H1 FY13: 26%) and 48% of its EBITDA (H1 FY13: 35%). 

Logicalis is an international IT solutions and managed services provider with a breadth of knowledge and
expertise in communications and collaboration, data centre and cloud services, and managed services.

Overall revenues and profits in the first half were significantly better than the first half of the 
previous year. The Latin America region was particularly strong and the performances of the other regions 
were in line with expectations.

Revenue increased by 12% to $767,3 million (H1 FY13: $682,3 million), including $58,4 million of revenue
from the 2e2 acquisition.  Organic revenue growth was 4%. 

Latin America remained the largest revenue contributor at 37% of total revenue (H1 FY13: 33%) despite a
further depreciation in the Brazilian currency relative to the US dollar. The Europe region grew from 
26% to 29% of total revenue whilst North Americas share of revenues fell from 32% to 26%. 

Revenues from product sales were up 6%, with robust increases in the Cisco and Other vendor categories.
Revenues from total services were up 29%, with strong growth in both professional and annuity service 
revenues.

With the strong growth in professional and annuity service revenues, the gross margin improved to 23,1% 
(H1 FY13: 21,8%). The gross profit was up 19% to $176,9 million (H1 FY13: $149,0 million) and EBITDA 
increased by 28% to $43,7 million (H1 FY13: $34,2 million), resulting in an EBITDA margin of 5,7% 
(H1 FY13: 5,0%). 

Operating profit was up 45% to $32,7 million (H1 FY13: $22,6 million), after charges for depreciation 
and amortisation of intangible assets. 

Logicalis continues to have a contingent liability in respect of a possible tax liability at its
PromonLogicalis subsidiary in Brazil.

Despite generally more positive macroeconomic news flow, trading conditions continue to remain 
challenging but stable, particularly in the European and North American markets. The outlook in the 
Latin America region remains positive with the exception of Argentina where government-imposed import 
restrictions are disrupting normal business activities. Logicalis continues to concentrate on 
demonstrating the value of ICT to customers by focusing on business benefits while managing cost. 
Logicalis expects the second half results to be seasonally better than the first half.


Consulting Services
The Consulting Services division accounted for 1% of Group revenues (H1 FY13: 1%) and 2% of EBITDA 
(H1 FY13: 2%).

The division comprises: Analysys Mason, a provider of management consulting, advisory, modelling and 
market intelligence services to the telecoms, IT and digital media industries;  Intact, a services 
and support consultancy delivering high-end professional services in networking, unified 
communications, and related security, wireless and data centre connectivity focusing on Cisco 
technologies; and The Via Group (Via), a specialist professional services organisation providing 
unified communications and integrated voice solutions that encompass Microsoft technology. 

Revenues contracted slightly to $37,1 million (H1 FY13: $38,3 million). An exceptional performance 
from Analysys Mason and revenue expansion at Via was offset by lower revenues at Intact. Analysys 
Masons strong performance contributed to growth in divisional gross profit to $14,4 million 
(H1 FY13: $13,9 million), expanding gross margins to 38,8% (H1 FY13: 36,3%).

The strong demand experienced by Analysys Mason for transaction support services in particular, has 
resulted in a continuation of enhanced operational leverage which is driving improved profitability. 
With the inclusion of Via and despite a tougher trading period at Intact, overall EBITDA improved by 
42% to $2,2 million (H1 FY13: $1,6 million).

The division has seen growing demand for core propositions with an emphasis on projects in Emerging 
markets. While the division continues to trade well in a few European jurisdictions, the managements 
sentiment is that Europe generally, still remains weak. This has been compensated by stronger sales in 
the Middle East, Asia and Africa. These trends are expected to continue into the second half.

Corporate
Corporate encompasses the net operating costs of the Datatec head office entities of $5,5 million 
(H1 FY13: $6,4 million) and unrealised exchange gains of $2,2 million and realised exchange gains of $0,9 
million (H1 FY13: $0,3 million unrealised exchange gains and immaterial realised exchange losses). Head 
office costs are slightly lower than in the Comparative Period due to lower acquisition and other 
project costs and the weakening of the Rand against the Dollar. 

Accounting for acquisitions
The following table sets out the provisional assessment of the fair value of assets acquired across 
all acquisitions made by the Group. 2e2 is the largest component of this. The receivables, inventory 
and taxation fair value assessments and the amounts recognised in the financial statements in respect 
of the 2e2 and Comztek acquisitions have only been determined provisionally due to the timing and number 
of legal entities acquired and this may impact goodwill (). 

  Acquisitions made in H1 FY14                     
  Assets acquired                          $000   
  Non-current assets                       7 048   
  Current assets                          91 301   
  Non-current liabilities                (13 192)  
  Current liabilities                    (65 840)  
  Net asset value acquired                19 317   
  Intangible assets                        9 542   
  Goodwill ()                            11 809   
  Non-controlling interest                  (586)  
  Fair value of acquisitions              40 082   
  Purchase consideration                           
  Issue of Datatec shares                 16 740   
  Cash                                    23 342   
  Total consideration                     40 082   
  Cash outflows for acquisitions                   
  Cash and cash equivalents acquired      22 929   
  Cash consideration paid                (23 342)  
                                            (413)  
                                                   


SUBSEQUENT EVENTS
On 14 October 2013, Logicalis acquired iConsult, a Channel Islands based integrator. 
      
      
CURRENT TRADING AND PROSPECTS
The Group remains very well positioned to support its vendors and customers through its investments to drive
scale and create broad international coverage. Technology innovation remains high in the sectors in which the
Group operates as IT infrastructure migrates to cloud based services, which is fuelling demand for
networking, security, mobility and unified communications solutions.

In light of Westons underperformance and the effect of continued disruption caused by the system
transition, the forecast for the financial year ending 28 February 2014 has been revised down from that 
originally presented on 15 May 2013.  
The revised forecast for the 2014 financial year is as follows:
 revenues of between $5,6 billion and $5,8 billion (previous forecast of between $5,6 billion and $5,9
  billion, FY13: $5,25 billion);
 profit after tax** of approximately $88 million (previous forecast $102 million, FY13: $85 million);
 underlying* earnings per share approximately 43 US cents, the same as the last financial year (previous
  forecast 50 US cents, FY13: 43,1 US cents); 
 earnings** per share of approximately 38 US cents (previous forecast 46 US cents, FY13: 40,8 US cents);
  and
 headline** earnings per share of approximately 40 US cents (previous forecast 46 US cents, FY13: 40,8 US
  cents). 

The financial information on which this forecast is based has not been reviewed or reported on by Datatecs
external auditors.


INTERIM CASH DISTRIBUTION BY WAY OF CAPITAL REDUCTION
The Group will distribute to shareholders an interim capital reduction out of contributed tax capital in
lieu of a dividend, of 80 RSA cents per share (approximately 8 US cents per share) for the six months ended 
31 August 2013. The issued share capital at the declaration date is 196,534,384 ordinary shares of 
ZAR0.01 each.

  The salient dates will be as follows:                                           
  Last day to trade                                    Friday, 22 November 2013   
  Shares to commence trading ex the distribution     Monday, 25 November 2013   
  Record date                                          Friday, 29 November 2013   
  Payment date                                          Monday, 2 December 2013   

Share certificates may not be dematerialised or rematerialised between Monday, 25 November 2013 and Friday,
29 November 2013, both days inclusive.

The capital distribution will be paid to shareholders on the Jersey branch register in pounds sterling
translated at the closing exchange rate on Wednesday, 27 November 2013.


REPORTING 
This interim report complies with International Accounting Standard 34 - Interim Financial Reporting, the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council, the requirements of the Companies Act 
of South Africa, the AIM Rules for Companies and the disclosure requirements of the JSE Limiteds Listings 
Requirements.
The accounting policies comply with International Financial Reporting Standards (IFRS) of the International
Accounting Standards Board and are consistent with those applied in the prior year financial statements. The
preparation of the Groups consolidated interim results for the six months ended 31 August 2013 was supervised
by the Chief Financial Officer, Mr RP Evans. The financial information has not been audited or reviewed by
Deloitte & Touche.


On behalf of the Board:

SJ Davidson             JP Montanana                        RP Evans
Chairman                Chief Executive Officer             Chief Financial Officer

16 October 2013

Directors 
SJ Davidson° (Chairman), JP Montanana (CEO), RP Evans (CFO), O Ighodaro°, JF McCartney°, LW Nkuhlu°, 
CS Seabrooke°, NJ Temple°    
°Non-executive British American Nigerian


*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 six months to 31 August 2013                         Unaudited            Unaudited              Audited       
                                                           six months to        six months to           year ended       
                                                             August 2013          August 2012        February 2013       
                                                                 US$000              US$000              US$000       
  Revenue                                                      2 765 508            2 621 254            5 246 667       
  Existing operations                                          2 675 108            2 591 630            5 063 855       
  Acquisitions                                                    90 400               29 624              182 812       
  Cost of sales                                               (2 351 991)          (2 244 218)          (4 466 333)      
  Gross profit                                                   413 517              377 036              780 334       
  Operating costs                                               (324 435)            (284 645)            (593 151)      
  Unrealised foreign exchange gains/(losses)                         167                 (493)              (1 645)      
  Operating profit before finance costs, depreciation 
  and amortisation (EBITDA)                                     89 249               91 898              185 538       
  Depreciation                                                   (15 330)             (13 634)             (28 657)      
  Amortisation of acquired intangible assets                      (6 917)              (7 216)             (15 508)      
  Operating profit                                                67 002               71 048              141 373       
  Interest income                                                  2 075                2 611                5 086       
  Financing costs                                                (12 474)             (13 979)             (26 993)      
  Acquisition-related fair value adjustments                       2 469                    -                6 443       
  Fair value movements on put option liabilities                   2 469                    -                 (505)      
  Fair value adjustments on deferred purchase 
  consideration                                                        -                    -                6 948       
  Share of equity-accounted investment earnings                      301                  573                1 078       
  Other income                                                       106                  167                  260       
  Loss on disposal of investments                                 (1 778)                   -                    -       
  Profit before taxation                                          57 701               60 420              127 247       
  Taxation                                                       (18 015)             (19 093)             (42 163)      
  Profit for the period                                           39 686               41 327               85 084       
  Other comprehensive income                                                                                             
  Items that may be reclassified subsequently 
  to profit and loss                                                         
  Exchange differences arising on translation 
  to presentation currency                                       (55 643)             (41 250)             (45 925)      
  Other items                                                        481                  (40)                   -       
  Translation difference on equity loans                          10 119                9 519               13 646       
  Tax effect of equity loans translation                          (3 047)              (1 639)              (2 386)      
  Total comprehensive (loss)/income for the period                (8 404)               7 917               50 419       
  Profit for the period attributable to:                                                                                   
  Owners of the parent                                            33 925               39 292               78 077       
  Non-controlling interests                                        5 761                2 035                7 007       
                                                                  39 686               41 327               85 084       
  Total comprehensive (loss)/income attributable to:                                                                     
  Owners of the parent                                            (7 065)              12 221               48 555       
  Non-controlling interests                                       (1 339)              (4 304)               1 864       
                                                                  (8 404)               7 917               50 419       
  Number of shares issued (millions)                                                                                     
  Issued                                                             197                  193                  193       
  Weighted average                                                   196                  190                  191       
  Diluted weighted average                                           198                  191                  193       
  Earnings per share (EPS) (US cents)                                                                                  
  Basic EPS                                                         17,3                 20,7                 40,8       
  Diluted basic EPS                                                 17,1                 20,5                 40,4       
  SALIENT FINANCIAL FEATURES                                                                                             
  Headline earnings                                               35 720               39 290               78 071       
  Headline earnings per share (US cents)                                                                                 
  Headline                                                          18,2                 20,7                 40,8       
  Diluted headline                                                  18,0                 20,5                 40,4       
  Underlying earnings                                             37 584               44 662               82 424       
  Underlying earnings per share (US cents)                                                                               
  Underlying                                                        19,2                 23,5                 43,1       
  Diluted underlying                                                19,0                 23,3                 42,6       
  Net asset value per share (US cents)                             436,2                437,7                448,2       
  KEY RATIOS                                                                                                             
  Gross margin (%)                                                  15,0                 14,4                 14,9       
  EBITDA (%)                                                         3,2                  3,5                  3,5       
  Effective tax rate (%)                                            31,2                 31,6                 33,1       
  Normalised effective tax rate (%)                                 31,6                 31,6                 34,9       
  Exchange rates                                                                                                         
  Average Rand/US$ exchange rate                                     9,7                  8,1                  8,4       
  Closing Rand/US$ exchange rate                                    10,3                  8,4                  8,8       




Condensed Group statement of financial position
  as at 31 August 2013                                         Unaudited            Unaudited              Audited       
                                                           six months to        six months to           year ended       
                                                             August 2013          August 2012        February 2013       
                                                                 US$000              US$000              US$000       
  ASSETS                                                                                                                 
  Non-current assets                                             674 477              636 432              661 324       
  Property, plant and equipment                                   63 804               59 480               62 476       
  Capitalised development expenditure                             52 696               44 248               49 599       
  Goodwill                                                       430 650              413 515              426 622       
  Acquired intangible assets                                      52 910               58 521               50 684       
  Investments                                                      6 914                6 125                6 613       
  Deferred tax assets                                             53 365               33 959               49 961       
  Other receivables and prepayments                               14 138               20 584               15 369       
  Current assets                                               2 155 576            1 943 192            2 028 740       
  Inventories                                                    409 097              371 463              362 172       
  Current tax asset                                               11 367                    -               18 586       
  Trade and other receivables                                  1 416 922            1 301 282            1 334 136       
  Cash and cash equivalents                                      318 190              270 447              313 846       
                                                                                                                         
  Total assets                                                 2 830 053            2 579 624            2 690 064       
  EQUITY AND LIABILITIES                                                                                                 
  Ordinary shareholders funds                                   859 878              844 174              865 433       
  Non-controlling interest                                        50 925               45 385               51 578       
  Total equity                                                   910 803              889 559              917 011       
  Non-current liabilities                                         95 590               83 672               84 324       
  Long-term liabilities                                           20 117               16 735               10 419       
  Amounts owing to vendors                                         1 567                9 507                3 050       
  Liability for share-based payments                               9 687               11 332               12 317       
  Deferred tax liabilities                                        63 104               46 098               57 147       
  Other liabilities                                                1 115                    -                1 391       
  Current liabilities                                          1 823 660            1 606 393            1 688 729       
  Payables and provisions                                      1 458 873            1 224 468            1 417 181       
  Amounts owing to vendors                                         9 468               10 390                9 649       
  Current tax liabilities                                         19 768                1 122               21 369       
  Bank overdrafts                                                335 551              370 413              240 530       
                                                                                                                         
  Total equity and liabilities                                 2 830 053            2 579 624            2 690 064       
  Capital expenditure incurred in the current period 
  (including capitalised development expenditure)                 19 863               21 655               45 523       
  Capital commitments at the end of the period                    25 163               11 733               13 283       
  Lease commitments in the period                                115 858               92 580               99 275       
  Payable within one year                                         30 830               30 890               31 095       
  Payable after one year                                          85 028               61 690               68 180       
                                                                                                                                                                    


 
Condensed Group statement of cash flows
  for the six months to 31 August 2013                         Unaudited            Unaudited              Audited       
                                                           six months to        six months to           year ended       
                                                             August 2013          August 2012        February 2013       
                                                                 US$000              US$000              US$000       
  EBITDA                                                          89 249               91 898              185 538       
  Profit on disposal of property, plant and equipment                 27                   **                  (13)      
  Non-cash items                                                  (5 733)              13 954                6 539       
  Cash generated before working capital changes                   83 543              105 852              192 064       
  Working capital changes                                       (102 593)             (48 065)             124 702       
  (Increase)/decrease in inventories                             (55 995)              40 176               45 321       
  Increase in receivables                                        (79 019)             (95 669)            (125 387)      
  Increase in payables                                            32 421                7 428              204 768       
                                                                                                                         
  Cash (utilised in)/generated from operations                   (19 050)              57 787              316 766       
  Net finance costs paid                                         (10 399)             (11 368)             (21 907)      
  Taxation paid                                                  (17 429)             (25 100)             (53 195)      
  Net cash (outflows)/inflows from operating activities          (46 878)              21 319              241 664       
  Cash outflows for acquisitions                                    (413)             (73 505)             (74 509)      
  Net cash outflows from other investing activities              (19 172)             (21 428)             (44 896)      
  Net cash inflows from disposal of operations           
  and investments                                                     18                    -                    -       
  Net cash inflows/(outflows) from other financing       
  activities                                                         199               (8 013)             (13 664)      
  Capital distributions                                          (16 214)             (17 218)             (32 394)      
  Net (decrease)/increase in cash and cash equivalents           (82 460)             (98 845)              76 201       
  Cash and cash equivalents at the beginning of          
  the year                                                        73 316                1 813                1 813       
  Translation differences on opening cash position                (8 217)              (2 934)              (4 698)      
  Cash and cash equivalents at the end of the period (*)         (17 361)             (99 966)              73 316       
  (*) Comprises cash resources, net of bank overdrafts 
  and trade finance advances.                                                                  
  (**) Less than $1 000.                                                                                                        




Condensed Group statement of changes in total equity
  for the six months to 31 August 2013                         Unaudited            Unaudited              Audited   
                                                           six months to        six months to           year ended   
                                                             August 2013          August 2012        February 2013   
                                                                 US$000              US$000              US$000   
  Balance at the beginning of the period                         917 011              879 428              879 428   
  Total comprehensive (loss)/income                               (8 404)               7 917               50 419   
  New share issues                                                20 561               26 429               29 508   
  Capital distributions                                          (16 214)             (17 218)             (32 394)  
  Equity-settled deferred purchase consideration                       -                    -               (3 333)  
  Share-based payments                                            (1 217)              (6 913)              (6 227)  
  Derecognition of put option liability                               84                5 102                5 102   
  Recognition of put option liability                               (984)                   -                    -   
  Acquisitions                                                      (720)               1 035                  853   
  Non-controlling interest                                           686               (6 221)              (6 345)  
  Balance at the end of the period                               910 803              889 559              917 011   




Determination of headline and underlying earnings
  for the six months to 31 August 2013                         Unaudited            Unaudited              Audited       
                                                           six months to        six months to           year ended       
                                                             August 2013          August 2012        February 2013       
                                                                 US$000              US$000              US$000       
  Profit attributable to the equity holders of the 
  parent                                                          33 925               39 292               78 077       
  Headline earnings adjustments                                        -                                                 
  Profit on disposal of property, plant and equipment 
  and investments                                                  1 804                   **                  (13)      
  Tax effect                                                          (9)                  (1)                   8       
  Non-controlling interest                                             -                   (1)                  (1)      
  Headline earnings                                               35 720               39 290               78 071       
  DETERMINATION OF UNDERLYING EARNINGS                                                                                   
  Underlying earnings adjustments                                  4 281                7 709               10 710       
  Unrealised foreign exchange (gains)/losses                        (167)                 493                1 645       
  Acquisition-related fair value adjustments                      (2 469)                   -               (6 443)      
  Amortisation of acquired intangible assets                       6 917                7 216               15 508       
  Tax effect                                                      (2 479)              (2 355)              (6 460)      
  Non-controlling interest                                            62                   18                  103       
  Underlying earnings                                             37 584               44 662               82 424       



Segmental analysis
  for the six months to 31 August 2013                         Unaudited            Unaudited              Audited   
                                                           six months to        six months to           year ended   
                                                             August 2013          August 2012        February 2013   
                                                                 US$000              US$000              US$000   
  Revenue                                                                                                            
  Westcon                                                      1 961 127            1 900 629            3 822 193   
  Logicalis                                                      767 268              682 338            1 350 442   
  Consulting Services                                             37 113               38 287               74 032   
  Revenue                                                      2 765 508            2 621 254            5 246 667   
  EBITDA                                                                                                             
  Westcon                                                         45 690               62 165              117 320   
  Logicalis                                                       43 738               34 203               78 593   
  Consulting Services                                              2 230                1 567                3 174   
  Corporate                                                       (2 409)              (6 037)             (13 549)  
  EBITDA                                                          89 249               91 898              185 538   
  Operating profit                                                                                                   
  Westcon                                                         35 030               53 461               98 200   
  Logicalis                                                       32 655               22 622               54 697   
  Consulting Services                                              1 743                1 020                2 081   
  Corporate                                                       (2 426)              (6 055)             (13 605)  
  Operating profit                                                67 002               71 048              141 373   
  Total assets                                                                                                       
  Westcon                                                      1 867 726            1 728 965            1 864 079   
  Logicalis                                                      885 770              792 969              769 075   
  Consulting Services                                             49 298               50 614               48 813   
  Corporate                                                       27 259                7 076                8 097   
  Total assets                                                 2 830 053            2 579 624            2 690 064   
  Total liabilities                                                                                                  
  Westcon                                                    (1 267 277)           (1 121 590)         (1 240 133)   
  Logicalis                                                     (610 276)            (530 868)            (497 151)  
  Consulting Services                                            (19 983)             (19 686)             (18 692)  
  Corporate                                                      (21 714)             (17 921)             (17 077)  
  Total liabilities                                          (1 919 250)           (1 690 065)          (1 773 053)  


Sandton
16 October 2013

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)


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