Datatec looks set to turn in a robust performance for its 2015 financial year, with revenues in the 12 months to 28 February 2015 expected to rise by about 12,5% to US$6,4bn and underlying earnings per share expected to climb to between 41 US cents and 43c, from 35,7c in the prior year.
In a trading statement, the global technology group, which has its primary listing in Johannesburg, said revenue growth has been driven by an improved performance at Westcon, its technology distribution business.
“Westcon has continued its robust recovery over the previous year with strong growth in sales and market share gains, particularly in North America,” Datatec said.
Westcon’s revenues make about about 75% of Datatec’s total, followed by services business Logicalis at 24%. Both business reported a “small improvement” in operating margins.
“Logicalis delivered a comparative and sequential improvement in the second half of FY2015, leading to revenue and Ebitda growth year over year,” it said. Ebitda is a measure of operating profit and reflects earnings before interest, tax, depreciation and amorisation.
Datatec said its expects to pay a final distribution to shareholders of 9c, the same level as the prior year, for a total of 17c for the full year, again the same as in FY2014. “This will again be a scrip distribution with cash dividend alternative,” it said.
It warned that the strong performance of the US dollar on foreign exchange markets over recent months has had the effect of diminishing the contribution to the group’s results from its operations denominated in other currencies.
“Continued dollar strength will have an impact on the group’s results for the year ending 28 February 2016,” it warned.
Datatec expects to release its FY2015 results on 13 May. — © 2015 NewsCentral Media
