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Value-added distribution pays off for Westcon SA

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Westcon SA has announced a 31% increase in revenues when compared to the first six months of last year, according to holding company Datatec’s results announced on 25 October. According to Westcon SA CEO, Jacques Malherbe, this is as a result of its strong organic growth and the company's value-added distribution model. 

According to Datatec’s results breakdown, Middle East and Africa operations made up 6% of the group’s revenue, up from 3% in 2004. Westcon SA’s EBITDA (earnings before interest, taxes, depreciation and amortisation) was up 66%.
“The fact that these results for Westcon SA were achieved through organic growth is very exciting,” says Malherbe. “This supports the idea that our choice of implementing a value-added distribution model is paying off.”
He adds that the company's three programmes have gained traction in the market over the past six months. Westcon SA’s OneDefense, OneVoice and ConvergencePoint programmes have attracted resellers that are breaking into the convergence market, enabling them to sell prepackaged best-of-breed technologies.
“Our key resellers over the past six months included Cisco and Motorola/Symbol, although we continue representing the full portfolio of vendors,” he says.
Westcon Africa’s growth was as a result of the acquisition of Jet Distribution.
“Jet's product range, which includes Cisco, Dell and Symantec,  performed extremely well,” says Malherbe.
Phase one of Westcon’s growth plan for Africa included the acquisition of Jet Distribution. Phase two, which included the acquisition of the Sparnoon-Dynatech Group was concluded on 1 September, and has resulted in a fully integrated distribution network across nine African countries.
“While these results will only be visible in 6 months time, we are well poised for continued growth as the number one distributor in Africa as far as our key products are concerned,” says Malherbe.
During the past six months, Westcon SA completed the installation of its new ERP system and is now in the final stages of system optimisation.
“This has added tremendous efficiencies and speed of response to our customers,” he says.
In addition, Westcon SA and Westcon Africa are actively increasing their stock levels across the continent to provide better service to resellers.
“This, coupled with our financial product Westcon Finance, enables us to provide true value-added services to our resellers,” says Malherbe.
He says the market remains buoyant and that the organisation’s outlook remains positive. “As mentioned in our chairman’s statement, we continue to see a strong demand for ICT products and services and expect to see continued growth over the next six months."