DATATEC LIMITED - Reviewed provisional results for the financial year ended 28 February 2014 and final cash distribution
14 May 2014 8:00
DTC 201405140012A
Reviewed provisional results for the financial year ended 28 February 2014 
and final cash distribution

Datatec Limited                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 


Reviewed provisional results for the financial year ended 28 February 2014 
and final cash distribution 


Datatec Limited (“Datatec” or the “Group"), the international information 
and communications technology (ICT) group, is today publishing its reviewed condensed 
consolidated results for the financial year ended 28 February 2014.


Results summary
• Revenue up 8% to $5,69 billion (2013: $5,25 billion)
• Gross profit increased by 8% to $841,4 million (2013: $780,3 million)
• EBITDA of $175,3 million (2013: $185,5 million)
• Underlying* earnings per share of 35,7 US cents (2013: 43,1 US cents)
• Capital distribution maintained at 17 US cents per share for the full year (2013: 17 US cents)
• Westcon: new leadership team and re-organisation implemented
• Logicalis: transforming into services-based business

Current trading and outlook
• Uneven global recovery
• Westcon management focused on improving operational efficiency 
• Logicalis well positioned for industry evolution
• 2015 financial year forecast:
    • Revenues in excess of $6 billion 
    • Underlying* earnings per share of more than 40 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

Jens Montanana, Chief Executive of Datatec, commented:
“We continued to grow revenue and our gross margins have been stable.  Logicalis had a notably strong year, 
reporting operating profits up 23%, whilst Westcon underperformed as a result of several factors.  

“We remain confident in the sustainability of our long-term growth strategy and have maintained our capital
distribution at the same level as the previous year.  The secular trends in our industry remain favourable.

“Logicalis is expected to continue its growth trajectory.  Westcon is now on a much stronger footing 
following the management changes and we are encouraged by its trading in the new financial year.”


PROFILE AND GROUP STRUCTURE
Datatec is a global ICT solutions and services group with more than 7,500 employees worldwide and with operations 
in over 50 countries. 

The Group’s 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 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. The secular trends in our industry remain favourable. 

Despite the challenging trading environment, Datatec has maintained its strong market position with no particular
dependency on any single market, territory or technology sector and has continued to improve its customer mix.

The Group maintained top line growth despite the trading background and operational difficulties faced by its 
largest division, Westcon, with revenues increasing by 8% to $5,69 billion (2013: $5,25 billion).

Overall Group gross margins were 14,8% (2013: 14,9%).  EBITDA was $175,3 million (2013: $185,5 million) while
underlying* earnings per share are 35,7 US cents (2013: 43,1 US cents).

The resilience of the business and cash generating ability has enabled the Group to maintain its full year capital
distribution (effective dividend) of 17 US cents.

Westcon’s performance was impacted adversely by the ERP system roll out in North America which had a big effect on
transaction volumes and by one-off asset write-offs.

On 15 January 2014 the Group’s Interim Management Statement announced that a provision of up to $20,0 million might 
be required against the recoverability of certain assets in Westcon North America. The majority of these legacy 
vendor claims were subsequently collected and a $6,2 million write-off of the remaining balance is reflected in 
these accounts.  Management is in the process of completing an internal review in this subsidiary. No further impact 
on the Group’s accounts has come to light to date and this review will be completed prior to the release of audited 
financial statements for the financial year ended 28 February 2014.

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

Latin America continues to be the Group’s strongest growing region but the weakness of emerging market currencies 
in the year impacted performance in US dollar terms. Moderate economic recovery in Europe is reflected in the 
increased revenue and gross profit contributed by that region. The operational difficulties of Westcon in North 
America have reduced the proportion of the Group’s business in that market. 

The rest of the world outside North America and Europe has continued to make a larger contribution to the Group’s
overall financial performance and now generates 39% (2013: 36%) of Datatec’s revenues and 44% (2013: 43%) of gross 
profits.

In addition to supporting Logicalis’ continued strong growth, the Group’s near-term focus is on restoring Westcon 
to operational efficiency and a profit growth trajectory. The mid-term priority remains focussed on building scale 
and critical mass in the developing markets that the Group has moved into successfully in the past few years.

During FY14 the Group completed a number of transactions:
•            4 March 2013 - Logicalis acquired four European operations of 2e2 for $31 million.
•            31 May 2013 - Westcon completed the acquisition of Comztek Holdings (Pty) Ltd for $9 million.
•            31 August 2013 - Westcon sold its 54% holding in Inflow Technologies.
•            14 October 2013 - Logicalis acquired iConsult in Jersey.

Datatec believes that the prevailing economic climate continues to provide attractive opportunities to enhance
margins, to facilitate consolidation in proven markets and to extend the Group’s geographical reach by continuing 
to make selective acquisitions.

FINANCIAL RESULTS
Group revenues increased by 8% to $5,69 billion (2013: $5,25 billion) with the rest of the world outside North 
America and Europe continuing to make a larger percentage contribution  - see below.

72% of Group revenue came from Westcon; 27% from Logicalis and 1% from Consulting Services.

Revenue % contribution by geography
                                FY2014    FY2013   
  North America                    27%       32%   
  Latin America                    18%       16%   
  Europe                           34%       32%   
  Asia Pacific                     11%       12%   
  Africa & Middle East (AME)       10%        8%   
                                  100%      100%   

Gross margins were 14,8% (2013: 14,9%) and gross profit increased by 8% to $841,4 million (2013: $780,3 million). 

Gross profit % contribution by geography
                                FY2014    FY2013   
  North America                    23%       28%   
  Latin America                    25%       24%   
  Europe                           33%       29%   
  Asia Pacific                     11%       12%   
  Africa & Middle East (AME)        8%        7%   
                                  100%      100%

Operating costs grew at 12% to $666,1 million (2013: $594,8 million). 

EBITDA was $175,3 million (2013: $185,5 million), including net unrealised foreign exchange losses of 
$3,4 million (2013: $1,6 million). Depreciation was $32,7 million (2013: $28,6 million). Amortisation of 
intangible fixed assets arising from acquisitions and software was $15,1 million (2013: $15,5 million). 

The fair value of companies acquired during the year was $42,6 million. As a result, goodwill and intangible 
assets increased by $12,9 million and $10,9 million respectively. The revenue and EBITDA included from these 
acquisitions in 2014 was $224,0 million and $8,6 million respectively. Had the acquisition dates been 1 March 2013, 
revenue attributable to these acquisitions would have been approximately $256,5 million. It is not practical to 
establish the EBITDA that would have been contributed by the acquisitions in 2014 if they had been included for 
the entire year.

Operating profit was $122,1 million (2013: $141,4 million). The net interest charge decreased slightly to 
$21,6 million (2013: $21,9 million). Profit before tax was $101,8 million (2013: $127,2 million).

The Group’s reported effective tax rate increased to 36,8% from 33,1%. The normalised effective tax rate was 37,1%
(2013: 34,9%). The Group’s 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.

Headline earnings per share were 31,6 US cents (2013: 40,8 US cents). Underlying earnings per share were 
35,7 US cents (2013: 43,1 US cents). 

The Group ended the financial year with net debt of $86,7 million (2013: net cash $47,6 million), taking into account
long-term debt of $17,4 million and short-term debt of $27,6 million, included in payables and provisions.  The year 
on year movement is driven by Westcon’s return to organic growth and the timing of certain deals.  The Group continues 
to enjoy comfortable headroom in its working capital facilities.

The Group issued 4,7 million new shares during the year, with 1,5 million shares issued as part of acquisition
activities, 2,5 million shares were issued as part of an institutional placement, 0,1 million shares were issued to 
satisfy exercised share options and 0,6 million shares were issued in settlement of exercises of awards under 
Datatec’s long term incentive share based payment schemes. 

The Group paid $31,6 million to shareholders during the year: a final capital distribution in respect of FY13 of 
$16,2 million in July 2013 and an interim capital distribution in respect of FY14 of $15,4 million in November 2013.  A 
final distribution for the 2014 financial year has been declared as set out below. 

Losses of $48,3 million (2013: $45,9 million) arising on translation to presentation currency are included in
comprehensive income of $24,9 million (2013: $50,4 million). 


Westcon 
Westcon accounted for 72% of the Group’s revenues (2013: 73%) and 50% of its EBITDA (2013: 59%).

Westcon revenue % geographic split
                   FY 2014    FY 2013   
  North America        29%        33%   
  Latin America        11%        10%   
  Europe               35%        34%   
  Asia Pacific         12%        13%   
  AME                  13%        10%   
                      100%       100%   
                                        

Westcon revenue % by product category 
                 FY 2014    FY 2013   
  Cisco              46%        49%   
  Convergence        11%        12%   
  Security           24%        24%   
  Other              19%        15%   
                    100%       100%   

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. Westcon’s portfolio of market-leading 
vendors includes: Cisco, Avaya, Brocade, Polycom, Check Point, Blue Coat and Palo Alto. 

Revenues increased 6% to $4,1 billion (2013: $3,8 billion) including an $89,3 million contribution from acquisitions. 

35% of Westcon’s revenue was generated in Europe (2013: 34%), 29% in North America (2013: 33%), 12% in Asia Pacific
(2013: 13%), 13% in AME (2013: 10%) and 11% in Latin America (2013: 10%).  Cisco products make up 46% of Westcon’s 
revenue (2013: 49%), 11% for convergence (Avaya/Nortel) (2013: 12%), 24% for security (2013: 24%) and 19% for other 
vendors (2013: 15%). 

Gross margins were 11,2% (2013: 11,6%) due to a combination of increased competitive pressures across all territories
and a reduction in early payment discounts for Cisco products in Europe.  The gross margin was also impacted by the 
$6,2 million provision relating to legacy vendor claims noted above.  

Gross profit increased 2% to $453,4 million (2013: $442,8 million). Operating expenses increased 11% to $362,1 million
(2013: $325,5 million) including expenses of $6,1 million associated with on-going ERP implementation. 

Westcon’s EBITDA was $91,3 million (2013: $117,3 million) while EBITDA margins were 2,3% (2013: 3,1%), with decreased
margins across all territories.  Operating profit was $62,0 million (2013: $98,2 million) after a non-recurring $5,5
million write-off of the abortive development costs for an e-commerce platform. 

Westcon’s net working capital days increased from 27 days in 2013 to 37 days in 2014 due to a combination of higher
DIO and lower DPO.  Net debt increased by $171 million, resulting in a net debt position of $195 million at year end 
as increased working capital requirements drove increased use of working capital facilities. 

Effective 31 May 2013, Westcon completed the acquisition of Comztek Holdings (Pty) Ltd, a leading systems distributor
with coverage in 26 African countries. The integration of Comztek into the Westcon South Africa business, which Datatec
owns jointly with its BEE partner, Mineworkers Investment Company, is now in progress.

On 31 August 2013, Westcon sold its 54% holding in Inflow Technologies following Datatec’s decision to exit the
distribution market in India in May 2013.

Westcon appointed a new CEO in December 2013 and a new CFO in March 2014.

Westcon’s transitioning of its global ERP system to a new platform had commenced with North America in the previous
financial year.  The roll-out was temporarily suspended during the financial year ended 28 February 2014 while 
operational problems were addressed and rectified.   In the current financial year the roll-out of the new ERP system 
has recommenced in the Asia Pacific region.  

Westcon has established a services division and to accelerate the development of this operation the Intact Group will
be transferred into Westcon from the Consulting Services division in June 2014.

Westcon management is focussed on improving operational efficiency and a return to profit growth.  


Logicalis
Logicalis accounted for 27% of the Group’s revenues (2013: 26%) and 49% of its EBITDA (2013: 40%). 

Logicalis revenue % geographic split 
                   FY 2014    FY 2013   
  North America        25%        31%   
  Latin America        35%        36%   
  Europe               31%        24%   
  Asia Pacific          9%         9%   
                      100%       100%   

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. 

Revenue increased by 15% to $1,55 billion (2013: $1,35 billion), including $134,3 million of revenue from the
acquisitions made during the year. Organic revenue increased by 5%.  

Revenues were sequentially 2% higher in the second half of the financial year on higher professional services and
product revenues. Gross margin improved in the second half of the financial year and profits were also higher than 
in the first half. All regions, with the exception of North America, had solid year on year revenue growth. North 
America was adversely impacted by the decline in product revenues experienced by IBM, a major vendor partner. The 
Latin America region continued to have strong growth although the reported results are reduced by the strengthening 
of the US dollar against the Brazilian Real in particular. In Argentina there were also government imposed import 
restrictions during the second half that had an adverse impact on the performance of the Latin America region.

Revenues from total services were up 31%, with both professional services and annuity service revenues significantly
up, and reflected the long-term strategic focus on growing services. Revenues from product sales were up 9%, with a
strong increase in Cisco product revenues partially offset by declines in the IBM and HP vendor categories.

Gross margin was also up at 23,3% (2013: 23,0%). Overall service margins were higher but product margins were down
slightly due to lower rebates (on lower IBM and HP product revenues). The gross profit was up 16% to $360,9 million 
(2013: $310,3 million) and operating expenses increased by 17%. EBITDA increased 15% to $90,3 million 
(2013: $78,6 million), resulting in an EBITDA margin of 5,8% (2013: 5,8%). 

Operating profit was up 23% to $67,5 million (2013: $54,7 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 Promon-Logicalis
subsidiary in Brazil.

On 4 March 2013 Logicalis acquired four European operations of 2e2, namely the Spanish and Irish systems 
integration businesses, the Channel Islands business (Jersey and Guernsey) and an operation in the Netherlands 
which is a leading IT Service Management consulting organisation. 

On 14 October 2013 Logicalis acquired iConsult (Jersey) Limited, a provider of desktop and mail-hosted solutions 
to the small and medium businesses (SMB) market.

Trading conditions are stable although the outlook for the Latin America region has weakened over the last few 
months. In Argentina the government-imposed import restrictions are continuing to disrupt normal business 
activities. 

Logicalis expects to continue investing in cloud and data centre services and is planning to deliver further 
growth in revenues and profits in the 2015 financial year.


Consulting Services
The Consulting Services division accounted for 1% of Group revenues (2013: 1%) and 1% of EBITDA (2013: 1%).

The division comprises: Analysys Mason, a provider of management consulting, advisory, modelling and market
intelligence services to the telecoms, IT and digital media industries;  and The Via Group (‘Via’), a specialist 
professional services organisation providing unified communications and integrated voice solutions that encompass 
Microsoft technology. Intact, 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, will be transferred to Westcon in June 2014.

Revenues were $72,6 million (2013: $74,0 million). A strong performance from Analysys Mason’s Consulting and Research
units was offset by a contraction of revenues at Intact and Via. Despite the lower revenues, the continued improved
utilisation of consultants and internal restructuring at Intact helped to improve gross margins from 36,8% to 37,3%. 
EBITDA was $2,1 million (2013: $3,2 million).


Corporate
Corporate encompasses the net operating costs of the Datatec head office entities of $13,2 million (2013: $14,3
million) and unrealised and realised foreign exchange gains of $2,6 million and $2,1 million respectively 
(2013: $0,5 million and $0,2 million respectively). 


Accounting for acquisitions
The following table sets out the assessment of the fair value of assets acquired across all acquisitions made 
by the Group, 2e2 is the largest component of this. 

Acquisitions made in FY14                        
  Assets acquired                          $’000   
  Non-current assets                       7 299   
  Current assets                          89 848   
  Non-current liabilities                (12 855)  
  Current liabilities                    (64 790)  
  Net asset value acquired                19 502   
  Intangible assets                       10 925   
  Goodwill                                12 882   
  Non-controlling interest                  (676)  
  Fair value of acquisitions              42 633   
  Purchase consideration                           
  Issue of Datatec shares                  3 925   
  Cash                                    38 708   
  Total consideration                     42 633   
  Cash outflows for acquisitions                   
  Cash and cash equivalents acquired      22 164   
  Cash consideration paid                (38 708)  
  Net cash outflow for acquisitions      (16 544)  
                                                   

CURRENT TRADING AND OUTLOOK
Economic conditions remain very mixed across Datatec’s markets.  While improvement has been evident in Europe there
are adverse indications in Australia and North America is variable. Customers remain cautious about investment and 
are increasingly seeking service based models of IT resource delivery.  

The Group aims to operate in the sectors which are growing as a result of this trend, such as infrastructure as a
service, data centre and networking managed services, the integration of unified communications systems and security
solutions.  

Based on current trading conditions and prevailing exchange rates, the Board expects revenues for the 2015 
financial year to be above $6,0 billion. The Board expects underlying* earnings per share to be more than 40 US cents. 

The financial information on which this forecast is based has not been reviewed and reported on by Datatec’s 
external auditors.

CASH DISTRIBUTION BY WAY OF CAPITAL REDUCTION
The 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 FY14 to shareholders of 80 RSA cents (approximately 
8 US cents, 2013: 8 US cents) per share on 2 December 2013.  The Group has declared and will distribute to 
shareholders a final capital reduction in lieu of a dividend out of Contributed Tax Capital of 93 RSA cents 
(approximately 9 US cents, 2013: 9 US cents) per share, making a total capital distribution to shareholders for 
the financial year ended 28 February 2014 of 173 RSA cents (approximately 17 US cents, 2013: 17 US cents) 
per share. 

The salient dates will be as follows:
  Last day to trade                                   Friday, 11 July 2014   
  Shares to commence trading “ex” the distribution    Monday, 14 July 2014   
  Record date                                         Friday, 18 July 2014   
  Payment date                                        Monday, 21 July 2014   

The final capital distribution will be paid to shareholders on the Jersey branch register in GBP translated at the
closing exchange rate on Wednesday, 16 July 2014.

Share certificates may not be dematerialised or rematerialised between Monday, 14 July 2014 and Friday, 18 July 2014,
both days inclusive.


DIRECTORATE
As announced on 15 January 2014, Rob Evans will become Group Operations Director with effect from 1 June 2014 and
Jurgens Myburgh, who was appointed as a Director of the Board of Datatec on 1 May 2014, will become Chief Financial 
Officer.


REPORTING 
The condensed consolidated financial statements are prepared in accordance with the requirements of the JSE Limited
Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings
Requirements require provisional reports to be prepared in accordance with the framework concepts and the measurement 
and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting 
Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting 
Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. 

The accounting policies applied in the preparation of the condensed consolidated financial statements are consistent 
with those applied in the prior year, other than for the adoption of IFRS 7 (Revised) Financial Instruments: Disclosures, 
IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, 
IFRS 13 Fair Value Measurement, IAS 19 (Revised) Employee Benefits, IAS 27 (Revised) Separate Financial Statements, 
IAS 28 (Revised) Investments in Associates and Joint Ventures and various other improvements. The adoption of these 
accounting standards did not have a material impact on the Group results. There were no material subsequent events.

The preparation of the condensed consolidated  financial statements for the financial year ended 28 February 2014 was
supervised by the Chief Financial Officer, Rob Evans.

These condensed consolidated financial statements for the year ended 28 February 2014 have been reviewed by 
Deloitte & Touche, who expressed an unmodified review conclusion. A copy of the auditor’s review report is available 
for inspection at Datatec’s registered office.


On behalf of the Board

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

14 May 2014

* 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





Condensed consolidated statement of comprehensive income 
  for the year ended 28 February 2014                                                                                                 
                                                                                            Year ended                   Year ended   
                                                                                         February 2014                February 2013   
                                                                                               US$’000                      US$’000   
  Revenue                                                                                    5 688 054                    5 246 667   
  Existing operations                                                                        5 464 474                    5 063 855   
  Acquisitions                                                                                 223 580                      182 812   
  Cost of sales                                                                            (4 846 618)                  (4 466 333)   
  Gross profit                                                                                 841 436                      780 334   
  Operating costs                                                                            (662 728)                    (593 151)   
  Unrealised foreign exchange losses                                                           (3 443)                      (1 645)   
  Operating profit before finance costs, depreciation and amortisation (“EBITDA”)              175 265                      185 538   
  Depreciation                                                                                (32 669)                     (28 657)   
  Amortisation of acquired intangible assets and software                                     (15 066)                     (15 508)   
  Impairment of intangible assets                                                              (5 473)                            -   
  Operating profit                                                                             122 057                      141 373   
  Interest income                                                                                3 580                        5 086   
  Financing costs                                                                             (25 168)                     (26 993)   
  Acquisition-related fair value adjustments                                                     2 400                        6 443   
  Fair value movements on put option liabilities                                                 2 421                        (505)   
  Fair value movements on deferred purchase consideration                                         (21)                        6 948   
  Share of equity-accounted investment earnings                                                    441                        1 078   
  Other income                                                                                     264                          260   
  Loss on disposal of investments                                                              (1 778)                            -   
  Profit before taxation                                                                       101 796                      127 247   
  Taxation                                                                                    (37 496)                     (42 163)   
  Profit for the year                                                                           64 300                       85 084   
  Other comprehensive income                                                                                                          
  Items that may be reclassified subsequently to profit and loss                                                                      
  Exchange differences arising on translation to presentation currency                        (48 271)                     (45 925)   
  Other items                                                                                    (566)                            -   
  Translation difference on equity loans                                                        12 700                       13 646   
  Tax effect of equity loans translation                                                       (3 301)                      (2 386)   
  Total comprehensive income for the year                                                       24 862                       50 419   
  Profit for the year attributable to:                                                                                                
  Owners of the parent                                                                          55 780                       78 077   
  Non-controlling interests                                                                      8 520                        7 007   
                                                                                                64 300                       85 084   
  Total comprehensive income attributable to:                                                                                         
  Owners of the parent                                                                          22 882                       48 555   
  Non-controlling interests                                                                      1 980                        1 864   
                                                                                                24 862                       50 419   
  Number of shares issued (millions)                                                                                                  
  Issued                                                                                           197                          193   
  Weighted average                                                                                 197                          191   
  Diluted weighted average                                                                         198                          193   
  Earnings per share ("EPS") (US cents)                                                                                               
  Basic EPS                                                                                       28,4                         40,8   
  Diluted basic EPS                                                                               28,2                         40,4   
  SALIENT FINANCIAL FEATURES                                                                                                          
  Headline earnings                                                                             62 083                       78 071   
  Headline earnings per share (US cents)                                                                                              
  Headline                                                                                        31,6                         40,8   
  Diluted headline                                                                                31,3                         40,4   
  Underlying earnings                                                                           70 165                       82 424   
  Underlying earnings per share (US cents)                                                                                            
  Underlying                                                                                      35,7                         43,1   
  Diluted underlying                                                                              35,4                         42,6   
  Net asset value per share (US cents)                                                           442,1                        448,2   
  KEY RATIOS                                                                                                                          
  Gross margin (%)                                                                                14,8                         14,9   
  EBITDA (%)                                                                                       3,1                          3,5   
  Effective tax rate (%)                                                                          36,8                         33,1   
  Normalised effective tax rate (%)                                                               37,1                         34,9   
  Exchange rates                                                                                                                      
  Average Rand/US$ exchange rate                                                                  10,1                          8,4   
  Closing Rand/US$ exchange rate                                                                  10,7                          8,8   


  
Condensed consolidated statement of financial position
  as at 28 February 2014                                                                                                                
                                                                                              Year ended                   Year ended   
                                                                                           February 2014                February 2013   
                                                                                                 US$’000                      US$’000   
  ASSETS                                                                                                                                
  Non-current assets                                                                             673 650                      661 324   
  Property, plant and equipment                                                                   65 282                       62 476   
  Capitalised development expenditure                                                             45 099                       49 599   
  Goodwill                                                                                       438 198                      426 622   
  Acquired intangible assets and software                                                         53 664                       50 684   
  Investments                                                                                      7 054                        6 613   
  Deferred tax assets                                                                             53 909                       49 961   
  Other receivables and prepayments                                                               10 444                       15 369   
  Current assets                                                                               2 318 374                    2 028 740   
  Inventories                                                                                    432 594                      362 172   
  Current tax asset                                                                               14 197                       18 586   
  Trade and other receivables                                                                  1 492 915                    1 334 136   
  Cash and cash equivalents                                                                      378 668                      313 846   
                                                                                                                                        
  Total assets                                                                                 2 992 024                    2 690 064   
  EQUITY AND LIABILITIES                                                                                                                
  Ordinary shareholders' funds                                                                   871 617                      865 433   
  Non-controlling interest                                                                        52 868                       51 578   
  Total equity                                                                                   924 485                      917 011   
  Non-current liabilities                                                                         94 131                       84 324   
  Long-term liabilities                                                                           17 359                       10 419   
  Amounts owing to vendors                                                                         2 447                        3 050   
  Liability for share-based payments                                                               7 501                       12 317   
  Deferred tax liabilities                                                                        66 052                       57 147   
  Other liabilities                                                                                  772                        1 391   
  Current liabilities                                                                          1 973 408                    1 688 729   
  Payables and provisions                                                                      1 531 265                    1 417 181   
  Amounts owing to vendors                                                                         7 497                        9 649   
  Current tax liabilities                                                                         14 208                       21 369   
  Bank overdrafts                                                                                420 438                      240 530   
                                                                                                                                        
  Total equity and liabilities                                                                 2 992 024                    2 690 064   
  Capital expenditure incurred in the current year                                   
  (including capitalised development expenditure)                                                 43 528                       45 523   
  Capital commitments at the end of the year                                                      20 422                       13 283   
  Lease commitments at the end of the year                                                       129 966                       99 275   
  Payable within one year                                                                         32 319                       31 095   
  Payable after one year                                                                          97 647                       68 180   
                                                                                                                                        
                                                                             


Condensed consolidated statement of cash flows
  for the year ended 28 February 2014                                                                                                    
                                                                                               Year ended                   Year ended   
                                                                                            February 2014                February 2013   
                                                                                                  US$’000                      US$’000   
  Operating profit before working capital changes                                                 183 437                      192 064   
  Working capital changes                                                                       (151 210)                      124 702   
  (Increase)/decrease in inventories                                                              (82 917)                      45 321   
  Increase in receivables                                                                        (150 710)                   (125 387)   
  Increase in payables                                                                             82 417                      204 768   
                                                                                                                                         
  Cash generated from operations                                                                   32 227                      316 766   
  Net finance costs paid                                                                         (21 588)                     (21 907)   
  Taxation paid                                                                                  (45 073)                     (53 195)   
  Cash (outflows)/inflows from operating activities                                              (34 434)                      241 664   
  Cash outflows for acquisitions                                                                 (16 544)                     (74 509)   
  Net cash outflows from other investing activities                                              (42 583)                     (44 896)   
  Capital distributions                                                                          (31 594)                     (32 394)   
  Net cash inflows/(outflows) from other financing activities                                      15 236                     (13 664)   
  Net (decrease)/increase in cash and cash equivalents                                          (109 919)                       76 201   
  Cash and cash equivalents at the beginning of the year                                           73 316                        1 813   
  Translation differences on opening cash position                                                (5 167)                      (4 698)   
  Cash and cash equivalents at the end of the year (*)                                           (41 770)                       73 316   
  (*) Comprises cash resources, net of bank overdrafts and trade finance advances.                                                     


  
Condensed consolidated statement of changes in total equity                   
  for the year ended 28 February 2014                                                                     
                                                                                     Year ended                   Year ended   
                                                                                  February 2014                February 2013   
                                                                                        US$’000                      US$’000   
  Balance at the beginning of the year                                                  917 011                      879 428   
  Total comprehensive income                                                             24 862                       50 419   
  New share issues                                                                       22 546                       29 508   
  Capital distributions                                                                (31 594)                     (32 394)   
  Equity-settled deferred purchase consideration                                        (3 333)                      (3 333)   
  Share-based payments                                                                    (109)                      (6 227)   
  Derecognition of put option liability                                                     131                        5 102   
  Recognition of put option liability                                                   (1 864)                            -   
  Other                                                                                   (201)                            -   
  Acquisitions                                                                          (2 009)                          853   
  Disposals                                                                               (265)                            -   
  Non-controlling interest                                                                (690)                      (6 345)   
  Balance at the end of the year                                                        924 485                      917 011   
                                                                              
                                                                              
                                                                              
Determination of headline and underlying earnings                             
  for the year ended 28 February 2014                                                                                          
                                                                                     Year ended                   Year ended   
                                                                                  February 2014                February 2013
                                                                                        US$’000                      US$’000
  Profit attributable to the equity holders of the parent                                55 780                       78 077   
  Headline earnings adjustments                                                           6 303                          (6)   
  Intangible impairment                                                                   5 473                            -   
  Profit on disposal of property, plant and equipment and investments                     1 844                         (13)   
  Tax effect                                                                            (1 013)                            8   
  Non-controlling interest                                                                  (1)                          (1)   
                                                                                                                               
  Headline earnings                                                                      62 083                       78 071   
  DETERMINATION OF UNDERLYING EARNINGS                                                                                         
  Underlying earnings adjustments                                                        14 411                       10 710   
  Unrealised foreign exchange losses                                                      3 443                        1 645   
  Acquisition-related fair value adjustments                                            (2 400)                      (6 443)   
  Amortisation of acquired intangible assets                                             13 368                       15 508   
  Tax effect                                                                            (6 406)                      (6 460)   
  Non-controlling interest                                                                   77                          103   
  Underlying earnings                                                                    70 165                       82 424   
                                                                              
                                                                              
Segmental analysis                                                            
  for the year ended 28 February 2014                                                Year ended                   Year ended   
                                                                                  February 2014                February 2013   
                                                                                        US$’000                      US$’000   
  Revenue                                                                                                                      
  Westcon                                                                             4 065 112                    3 822 193   
  Logicalis                                                                           1 550 322                    1 350 442   
  Consulting Services                                                                    72 620                       74 032   
  Revenue                                                                             5 688 054                    5 246 667   
  EBITDA                                                                                                                       
  Westcon                                                                                91 301                      117 320   
  Logicalis                                                                              90 318                       78 593   
  Consulting Services                                                                     2 094                        3 174   
  Corporate                                                                             (8 448)                     (13 549)   
  EBITDA                                                                                175 265                      185 538   
  Operating profit                                                                                                             
  Westcon                                                                                61 974                       98 200   
  Logicalis                                                                              67 523                       54 697   
  Consulting Services                                                                     1 041                        2 081   
  Corporate                                                                             (8 481)                     (13 605)   
  Operating profit                                                                      122 057                      141 373   
  Total assets                                                                                                                 
  Westcon                                                                             2 036 245                    1 864 079   
  Logicalis                                                                             886 131                      769 075   
  Consulting Services                                                                    53 258                       48 813   
  Corporate                                                                              16 390                        8 097   
  Total assets                                                                        2 992 024                    2 690 064   
  Total liabilities                                                                                                            
  Westcon                                                                           (1 443 233)                  (1 240 133)   
  Logicalis                                                                           (585 037)                    (497 151)   
  Consulting Services                                                                  (22 167)                     (18 692)   
  Corporate                                                                            (17 102)                     (17 077)   
  Total liabilities                                                                 (2 067 539)                  (1 773 053)   


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 International Limited - Nominated Advisor and Broker                            
  Nick Adams Alex Collins                                            +44 (0) 20 7029 8000   
                                                                                            
  finnCap - Broker                                                                          
  Tom Jenkins Henrik Persson                                         +44 (0) 20 7220 0500                
                                                                  
  Instinctif Partners                                                                       
  Adrian Duffield (UK)                                               +44 (0) 20 7457 2020                                                
  Frederic Cornet (SA)                                               +27 (0) 11 447 3030                                                                     
                                                                       
Datatec Limited  (www.datatec-group.com)  

Sandton                                                                         
14 May 2014

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

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