Jens Montanana
Photo by: Duane Daws
Information and communications technology group Datatec on Thursday reported an improvement at its embattled subsidiary, Westcon, as former star performer Logicalis registered a slow-down during the four months to June 30.
The group, which reported higher overall revenues compared with the prior corresponding period, said Westcon’s financial performance continued to improve as it successfully dealt with the operating issues experienced during the previous financial year.
However, the anticipated slow-down in trading at Logicalis’s Brazil unit, as telecommunications and service providers suspended installation activities on their networks in the run-up to and during the 2014 FIFA World Cup, was expected to impact the group’s half-year earnings.
Logicalis reported an 8% decline in revenue compared with the comparative four-month period last year.
However, based on current exchange rates, market conditions and the increased backlog at Logicalis, Datatec said its forecast for the financial year ahead remained unchanged.
“While Logicalis has experienced a slow-down in trading, we remain confident, based on the significant backlog of business, that trading will recover in the second half,” averred CEO Jens Montanana.
Meanwhile, Westcon achieved revenue growth of 11% for the four months to June 30, with growth experienced across all geographical markets except Asia Pacific.
In North America, revenues jumped 17%, while gross margins remained stable when compared with the four months ended June 2013.
“We are very pleased with the progress Westcon is making in increasing operating efficiency and we are seeing volume pick up and market share gains,” Montanana said.
Datatec would release its results for the first half of the year on October 15.