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DTC - Datatec Limited - Year end trading and EPS update
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
YEAR END TRADING AND EPS UPDATE
Datatec Limited ("Datatec" or the "Group", JSE and LSE: DTC), the
international information & communications technology (ICT) group, has
announced a year end trading and earnings* update for the year ended 28
February 2007.
The Group`s financial performance has improved for the fourth
successive annual reporting period with a strong performance in the second
half of the last financial year.
The Group`s consolidated revenues are expected to increase by 17% to almost
$3.5 billion (2006: $2.98 billion). Revenues at Westcon have grown by
approximately 10% to over $2.5 billion (2006: $2.28 billion),
while Logicalis` revenues have grown by more than 40%, of which 11% was
organic, to over $750 million (2006: $546 million). Analysys Mason
revenues were similar to the prior year at $60 million, despite the
completion of a significant multi-year contract at the start of the year.
Emerging market activities covering South Africa and the Middle East, also
posted strong gains in revenues.
The momentum behind the increase in EBITDA margins and operating profit
margins has continued with the Group expecting to report EBITDA of
approximately $117 million (2006: $85m). This includes an unrealised
foreign exchange gain of approximately $5 million (2006: $1 million).
EBITDA margins at Westcon have increased, mainly as a result of improved
performance in the European and Asia Pacific businesses. Logicalis has
maintained its healthy EBITDA expansion, driven by the improved
efficiencies derived from the additional critical mass gained from
acquisitions. Analysys Mason had a similar year-on-year EBITDA
performance. Emerging markets contributed strong gains in EBITDA profits.
Headline earnings per share and earnings per share for the year ended 28
February 2007 are expected to be between 35 and 38 US cents (2006: 26.91 US
cents and 26.54 US cents respectively).
Solid progress has been made with acquisitions in the second half. NOXS,
the pan-European security distributor, and CSF, a UK-based solutions
provider and service organisation of HP and IBM technologies, were acquired
for an aggregate consideration of $82 million. Together, these acquisitions
will continue to improve the Group`s vendor product and technology mix,
drive a greater services contribution and further develop the recurring
revenue base. They will also contribute to the ongoing margin improvement
expected in the operating divisions as a result of greater scale and
efficiency.
The Group expects to announce its preliminary results for the year ended 28
February 2007 on 16 May 2007.
The financial information provided above has not been reviewed and reported
on by the Company`s auditors.
Enquiries:
Datatec Limited (www.datatec.co.za)
David Pfaff, Group Finance Director + 44 (0) 1753 797 118
Wilna de Villiers, Group Marketing +27 (0) 11 233 1013
Manager
College Hill (UK press)
Adrian Duffield/Corinna Dorward + 44 (0) 20 7457 2020
Fleishman-Hillard (SA press)
Michelle de Pons/Lucien Vallun + 27 (0) 11 548 2000
Note to editors
* Companies listed on the JSE limited are obliged to notify shareholders as
soon as the Board is satisfied that headline or actual earnings per share
are likely to vary by more than 20% compared to the previous reporting
period.
Datatec is an international Information & Communications Technology (ICT)
group focused on the supply of advanced ICT and the delivery of
professional services into the higher growth segments of the global market.
The Group`s main lines of business comprise the global distribution of
advanced networking and communications convergence products (Westcon), IT
infrastructure solutions and network integration (Logicalis) and strategic
telecommunications consulting (Analysys Mason). Datatec is registered
in South Africa and its shares are listed in Johannesburg and London. The
Group has approx 3,000 employees around the world.
Sandton
14 March 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 14/03/2007 08:59:54 Produced by the JSE SENS Department. |