Johannesburg-listed multinational technology distribution and services group Datatec has reported a slight decline in headline earnings per share for its financial year ended 28 February 2013, despite a 4% improvement at the top line and a strong performance by its Logicalis subsidiary.

Headline earnings fell to 40,8c/share from 43,1c/share a year ago, while revenue rose to $5,25bn from $5,03bn previously.

Datatec’s largest subsidiary, Westcon, experienced a slowdown in the second half of the financial year, particularly in Europe and North America, says the group’s CEO, Jens Montanana. “Logicalis, by contrast, continued to perform strongly throughout the year, especially in the UK and the US.”

Montanana says Datatec expects “another robust performance” from Logicalis in the 2014 financial year, while Westcon will “continue to consolidate and focus on improving operational leverage”.

Westcon accounted for 73% of the group’s revenues in the 2013 financial year, from 73% before. It made up 59% of group earnings before interest, tax, depreciation and amortisation (Ebitda), down from 65% previously.

In contrast, Logicalis accounted for 26% of revenue, up from 25%, with its Ebitda contribution jumping from 25% to 40%.

Despite the slowdown at Westcon, Data has increased its full-year dividend by 6%.

“Our increase in capital distribution, despite the weaker second half and challenging trading environment, is a clear demonstration of our confidence in the sustainability of our long-term growth strategy,” says Montanana.

Overall, Latin America, Asia-Pacific, and the Middle East and Africa remained Datatec’s strongest-performing markets, generating 36% (2012: 33%) of its revenue and 43% (40%) of its gross profit. — (c) 2013 NewsCentral Media