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Datatec continues to deliver growth

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Datatec has reported that group revenue for the six months ended 31 August 2015 is up 10,1% to $3,3-billion.
EBITDA at $80,6-million, underlying earnings per share are 16.6 US cents and an interim distribution was maintained at 8 US cents per share.
Good revenue growth was driven by Westcon North America, although there was a decline in contribution from emerging markets. Profitability was impacted by foreign exchange losses, reorganisation and BPO project.
Going forward, the group expects continued revenue growth. It is planning ongoing reorganisation at Logicalis UK and BPO transformation in Westcon EMEA. Datatec expects second half sequential improvement in EBITDA (excluding foreign exchange), and will consider targeted acquisitions in strategic markets.
Jens Montanana, chief executive of Datatec, comments: “We continue to deliver revenue growth from a sound base of diversified businesses and geographies. North America was the primary contributor to this growth in H1 FY16.
“The strong US dollar impacted the revenue and earnings contribution of emerging markets. The impact of foreign exchange losses at Westcon Angola was particularly disappointing.
“The restructuring of Westcon’s EMEA region through business process outsourcing and the reorganisation of Logicalis’ UK business are important internal initiatives that will affect profitability in FY16 but position these units for better performance in the future,” Montanana adds.
“We remain confident of our positioning in the ICT market and are pleased with the continued development of the Datatec Financial Services division in our portfolio.”