Tag: Datatech

Datatech has issued a trading statement, cautioning investors that its financial results will be substantially different from the previous year.

The group expects the, for the 2018 financial year, underlying earnings per share will be at least 20 percent (2.2 US cents) lower than the 110 US cents reported in the 2017 financial year.

Headline earnings per share will also be at least 20 percent (0.4 US cents) lower than the two cents reported last year. Earnings per share will be at least 20 percent (0.28 US cents) higher than the 1.4 US cents reported in 2017.

The statement said that the year over year decline in underlying earnings per share and headline earnings per share was primarily as a result of the sale of Westcon Americas to SYNNEX. This had an effect from 1 September 2017, with the earnings from Westcon Americas only being included in the FY18 earnings for a six-month period (compared to 12 months in FY17).

The year over year increase in earnings per share is as a result of the expected profit generated from the sale of Westcon Americas to SYNNEX. The company expects to release its full-year results around 17 May 2018.

IT group Datatec has reported “disappointing” figures for the first half of its fiscal 2018.

For the six months ending 31 August, Datatec saw revenue drop 1.6 percent to £2.28 billion.

This includes contributions from its Americas distribution arm, which it sold to Synnex on 1 September; and its Dutch Logicalis SMC arm, which it sold to DXC Technology in October.  So despite all these, sales revenues still dropped.

Continuing operations – which houses the APAC and EMEA Westcon businesses, and Logicalis – saw revenue drop seven percent to $1.84 billion.

Datatec CEO Jens Montanana said: “Although the first-half headline results were disappointing, we have generated exceptional value through the successful sale of our Westcon Americas business and recently the smaller disposal of the non-core Logicalis SMC business.

“The outlook for Logicalis, which contributed most of our profits, is increasingly positive, with some important developments set to support an overall improvement in H2. We are hurrying to create the appropriate structure in Westcon International to support the direction of the business.”

Following the sale of the American business, Logicalis contributes over four times the revenue of the remaining Westcon business.

Datatec said it would continue “streamlining” the Westcon business to improve its financial performance.