Datatec sees earnings up 31% in FY2011
Datatec reports revenues and margins rose in latest annual results
Datatec, the parent company of distributor Westcon, has reported a 15% rise in revenue for its financial year ended 28th February 2011.
Revenue hit $4.3 billion, up from $3.7 billion in FY10, while EBITDA rose 31% to $142.2 million.
The company cited strong growth in Westcon and its IT services business Logicalis, which saw revenue growth of 13% and 25% respectively.
The company's diverse business mix, which includes consulting services businesses Analysys Mason and Intact, plus its geographical diversity helped it to weather economic uncertainty in some markets. As a group, Asia, South America and the Middle East where the strongest performing markets, while Westcon saw gross margins improve in North America, Latin America and Africa, India and Middle East (AIME).
Jens Montanana, chief executive of Datatec, commented: "I am delighted to be able to report on strong results for the year, ahead of previous guidance. Despite an environment which remained challenging in many markets, our focus on operational performance has meant that we have been able to increase revenues and expand margins resulting in the bottom line growing at twice the rate of revenues.
"This performance is being driven by a combination of strong operational leverage and an improving global economy which is returning to a more predictable and aligned recovery across the majority of the Group's geographies.
"We have a robust business model which should deliver further improved results in the years ahead and we are therefore increasing earnings guidance for the current financial year," he added.