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DTC - Datatec Limited - 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 September 2011 to 31 December 2011 ("the Period").
Group
The Group`s trading and profitability continues to improve. As anticipated,
the financial results for the second half of the current financial year
(ending 28 February 2012) are expected to be better than the results for
the first half of the current financial year, and comparatively better than
the results for the second half of the prior financial year. This is
despite the current backdrop of poor economic data, sovereign indebtedness
issues and continuing weak consumer markets in many of the Group`s markets.
During the Period, conditions have been challenging in North America and
Europe in particular, although there have been recent signs of recovery in
some of the Group`s US operations. The exceptional performance previously
reported in South America has continued and Asia Pacific is performing
well.
On 11 May 2011 and 12 October 2011, the Group published a forecast for the
financial year ending 28 February 2012 of revenues of approximately $5
billion (2011: $4.3 billion), profit after tax** of approximately $84
million (2011: $46 million), underlying* earnings per share of
approximately 47 US cents (2011: 37.9 US cents) and both earnings** and
headline earnings** per share of approximately 42 US cents (2011: 22.8 and
23.9 US cents respectively).
Based on current exchange rates and trading conditions, these forecasts
remain unchanged. On this basis a final capital distribution in lieu of a
dividend of 9 US cents is anticipated, resulting in total capital
distributions of 16 US cents forecast for the 2012 financial year (2011: 13
US cents).
Jens Montanana, Chief Executive Officer said:
"I am delighted to report that the strong operational performance reported
in the first half has continued.
"Datatec`s global reach and diversity are continuing to help insulate us
against the poor economic backdrop of many of the world`s economies. Latin
America and Asia Pacific remain the best performing markets, whilst the
Group`s operations continue to perform well in challenging trading
conditions in North America and Europe."
Westcon
The strong Westcon financial performance delivered during the first half of
the current financial year has continued as this business continues to
benefit from good operating leverage.
Despite challenging conditions, the North American business has continued
to perform well. Robust performances were achieved in Latin America, Asia
Pacific and the Middle East, with solid execution supporting good
performance in Europe.
In December 2011, Westcon completed the refinancing of its North American
credit facility on very favourable financial terms with a banking syndicate
led by HSBC. Westcon has the right to increase this $250 million facility
by an additional $50 million.
Logicalis
The solid performance of Logicalis reported in the interim results on 12
October 2011, continued, with revenues and operating margins expected to
further improve in the second half over the first half of the financial
year.
In particular, Logicalis` exceptional performance in Latin America
continued, while business in the US and UK markets has been more
challenging.
Profitability in the second half of the current financial year is expected
to be better than both the first half of the current financial year and the
second half of the prior financial year.
Consulting Services
The financial performance of the Consulting Division is continuing to
improve, with much better profitability than the prior financial year.
Full year results
The Group expects to release its full year results for the financial year
ending 28 February 2012 on or about Wednesday 16 May 2012.
The financial information on which this statement is based has not been
reviewed and reported on by Datatec`s external auditors.
* Underlying earnings per share excludes goodwill and intangibles
impairment, amortisation of acquired intangible assets, 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.
Enquiries:
Datatec Limited (www.datatec.co.za)
Jens Montanana - Chief Executive +27 11 233 1221
Officer
Ivan Dittrich - Chief Financial +27 11 233 1221
Officer
Jefferies International Limited-
Nominated Advisor and Broker
Chris Snoxall / Justin Matthews +44 20 7029 8000
+44 (0) 20 7220 0500
finnCap - Broker
Charlie Cunningham/Tom Jenkins
College Hill
Adrian Duffield/Jon Davies (UK) +44 20 7457 2020
Fred Cornet +27 11 447 3030
Sandton
18 January 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 18/01/2012 09:00:01 Supplied by www.sharenet.co.za
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