Datatec expects to post substantially different results for the year ended 28 February 2018 compared to the previous year.
On 25 January 2018 Datatec announced that it had a reasonable degree of certainty that the financial results for FY18 would differ by at least 20% from the previous corresponding period, but at that time did not have a reasonable degree of certainty of the specific percentage or range difference in respect of its three earnings per share metrics compared to FY17.
The group can now reveal, with a reasonable degree of certainty that:
* Underlying loss per share is expected to be 5.6 US cents, 16.6 US cents and more than 100% lower than the 11.0 US cents underlying* earnings per share reported in FY17;
* Headline loss per share is expected to be 19.1 US cents, 21.1 US cents and more than 100% lower than the 2.0 US cents headline earnings per share reported in FY17;
* Earnings per share is expected to be 20.5 US cents, 19.1 US cents and more than 100% higher than the 1.4 US cents reported in FY17.
The year over year decline in underlying* earnings per share and headline earnings per share is primarily as a result of the sale of Westcon Americas to SYNNEX with effect from 1 September 2017, with the earnings from Westcon Americas therefore only being included in the FY18 earnings for a 6 month period (compared to 12 months in FY17) and the weaker financial performance for Westcon International in FY18 compared to FY17 which contrasted with a much stronger performance in Logicalis and Analysys Mason.
The year over year increase in earnings per share is as a result of the profit generated on the sale of Westcon Americas to SYNNEX and the sale of Logicalis SMC.
Westcon goodwill previously carried by the Group ($247-million) was allocated to Westcon Americas in full and derecognised as part of the profit on disposal. A portion of capitalised development expenditure ($33-million) was similarly allocated to Westcon Americas and derecognised as part of the profit on disposal. Most of the remaining capitalised development expenditure ($55-million) was impaired at the year end.
This will result in significantly lower amortisation expense in future financial years.