Datatec’s interim revenue up

Information and communication technology group Datatec says revenue rose 10 percent to $3.3 billion in the first half of the year.

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Johannesburg - International information and communication technology group Datatec said on Wednesday that group revenue rose 10 percent to $3.3 billion in the first half of the year, although underlying earnings per share fell as gross profit margins shrank and the company suffered some foreign exchange losses, particularly in Angola.

Datatec, which said it would maintain its interim scrip dividend of eight US cents per share and offer a cash alternative, reported an 8.8 percent fall in underlying earnings per share to 16.6 US cents.

The group’s networking and communication convergence products division Westcon – which contributed 76 percent of revenue during the half-year – enjoyed solid revenue growth, particularly in North America.

“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,” said Jens Montanana, the chief executive of Datatec, in a statement.

“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,” he added.

The ongoing restructuring of Westcon’s EMEA region and the overhaul of IT network integration unit Logicalis’ UK business would affect profitability over the full year but would position Datatec for a better financial performance in the future, Montanana said.

ANA