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.
