Datatec on track
Datatec (DTC), the international information and communications technology (ICT) group, advised on Thursday that the group’s financial performance for the year ended February remains in line with the expectations set out in a trading statement January 15.
Accordingly, the board expects earnings per share and headline earnings per share to be between US25c and US29c per share, with underlying earnings per share expected to be between US31c and US35c per share, it said.
"The board plans on paying the same level of annual capital distribution at US12c per share for the financial year ended February 28 2009. Further details on the distribution will be included in the results announcement," the group stated.
"The group has focused on improving its cash generation and therefore the board is particularly pleased that operating cash generation in the second half of the financial year has been very strong within Westcon, well ahead of the group’s expectations. At the end of the financial year, Datatec moved to an overall net cash position from a previous net debt position.
"As indicated in the trading statement and IMS in January, product revenues have recently been following trends seen in many of the world’s major economies and have been tracking between 10% and 15% lower than for the same period last year.
"However, services and consulting revenues have been less impacted by the current economic climate and some areas, such as annuity services revenues, have improved year-on-year," the group added.
Separately, it was announced that Dean Douglas will become president and chief executive of Westcon Group, the group’s subsidiary, on April 1 2009. Douglas joined Westcon Group as chief operating officer in June 2008 and has held senior executive roles at Motorola and IBM, as well as being chief executive of LCC International, Inc.
Jens Montanana, chief executive officer said: "The group completed the year with improved working capital and a net cash position, following strong cash generation in the second half, illustrating both the defensive nature of our business model and the positive actions taken.
"We plan to pay the same level of capital distribution for the year just completed, reflecting confidence in our financial position, particularly when some parts of the group are performing with relative resilience in the downturn."
The group now expects to release its preliminary results for the year ended February 28 2009 on Thursday May 14 2009.
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