DATATEC LIMITED - Interim Management Statement
17 July 2014 8:00
DTC 201407170004A
Interim Management Statement

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

Interim Management Statement

Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international Information and
Communications Technology (ICT) group, is today publishing an IMS (Interim Management
Statement) covering the period from 1 March 2014 to 30 June 2014 ("the Period").


The Group has delivered a satisfactory performance over the Period. Overall Group revenues are
higher than those for the four months ended 30 June 2013 ("the Comparative Period"). Westcon’s
financial performance continues to improve as it successfully addresses the operating issues
experienced during the financial year ended 28 February 2014 ("FY14"). Logicalis is experiencing a
slow-down in trading, most of which was anticipated as part of the FIFA World Cup in Brazil.

Jens Montanana, Chief Executive Officer said:

"Trading conditions across the Group remain varied. However, our strategy of
developing a global footprint and the diversification of our business streams, continues
to provide resilience and sustainable growth for the Group.

"We are very pleased with the progress Westcon is making in increasing operating
efficiency and we are seeing volume pick up and market share gains.

"While Logicalis has experienced a slow-down in trading we remain confident, based on
the significant backlog of business, that trading will recover in the second half.”

On 14 May 2014 the Group published a forecast for the financial year ending 28 February 2015
("FY15") for revenues above $6 billion and underlying* earnings per share of more than 40 US
cents. This forecast was based on the following assumptions: revenue growth will be largely driven
by an improved performance at Westcon; Westcon’s revenues will constitute approximately 72% of
the total revenue mix and Logicalis’ revenues 27%; a small improvement in operating margins at
Westcon and Logicalis; an effective Group tax rate of 34%.

The slow-down at Logicalis’ Brazil unit is expected to impact Group earnings at the half-year
reporting stage. However, based on current exchange rates, market conditions and the increased
backlog at Logicalis, the Group's forecast for FY15 remains unchanged.


Westcon has achieved revenue growth of 11% over the Comparative Period. Growth was achieved
in all geographical markets except Asia Pacific. In North America, revenues were 17% higher over
the Comparative Period.

Gross margins have been sustained relative to the Comparative Period.

Logicalis reported revenue 8% below that of the Comparative Period. The FIFA World Cup has
resulted in telecommunications and service providers suspending installation activities on their
networks. Logicalis’ sales backlog indicates that business should return to expected levels but this
effect will skew the division’s results more towards the second half of FY15.

Gross margins continued to improve as the share of annuity services revenue continues to grow in
the sales mix.

Consulting Services

Trading in the consulting Services Division was satisfactory. In June 2014, the business of the Intact
Group was transferred into Westcon Group to support the newly established services operations of

Interim results

The Group expects to release its half year results for the six months ending 31 August 2014 on
Wednesday 15 October 2014.

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

* Excluding impairment of goodwill and intangible assets, profit or loss on sale of investments and
assets, amortisation of acquired intangible assets, unrealised foreign exchange movements,
acquisition related adjustments, fair value movements on acquisition-related financial instruments
and the taxation effect on all of the aforementioned.



Datatec Limited (                                        
Jens Montanana, Chief Executive Officer                                   +44 (0) 1753 797 118
Jurgens Myburgh, Chief Financial Officer                                  +27 (0) 11 233 3301
Wilna de Villiers, Group Marketing Manager                                +27 (0) 11 233 1013
Jefferies Hoare Govett – Nominated Advisor and Broker                      
Nick Adams/ Alex Collins                                                  +44 (0) 20 7029 8000
finnCap – Broker                                                           
Tom Jenkins / Henrik Persson                                              +44 (0) 20 7220 0500
Instinctif Partners                                                        
Adrian Duffield (UK)                                                      +44 (0) 20 7457 2020
Frederic Cornet (SA)                                                      +27 (0) 11 447 3030

17 July 2014

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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