Datatec sees improved performance in H2
Datatec should hit revenue predictions after better financial results in second half of year
Datatec is on target to hit its revenue predictions for the financial year, the company has announced.
The group is expected to post revenues of between $4.1 billion and $4.4 billion for the year ending 28th February, after performance improved significantly during the second half of the year.
In an interim management statement, Datatec, the owner of Westcon and ICT infrastructure specialist Logicalis, said it expected to hit the higher end of expectations for the year.
The improved performance was driven by good signs of recovery in the US, and strong performance in Asia, South America and the Middle East.
Jens Montanana, CEO of Datatec said: "The improvement in trading conditions reported at our interims results in October last year has continued, with a notable return to confidence across all our major markets, particularly the US. It appears that we are finally returning to a growth environment that we can believe in. Gross margins are firming and profit margins expanding as the group continues to benefit from increased operational leverage and geographical reach."
For the Westcon business, the company reported increased gross margins and operating margins expanding on the back of improved operating leverage. The Logicalis business saw a steady improvement, posting its best ever revenue month in December 2010. The group's consulting business saw slow recovery however, as discretionary spending amongst the division's corporate and telecommunications customer base remained constrained.
The group expects to release its preliminary results for the financial year on or about 11th May 2011.