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Johannesburg - ICT group Datatec [JSE:DTC] said on Wednesday that its trading and profitability are continuing to improve.
Releasing its in an interim management statement, Datatec said revenues and operating profits in the period from March 1 2011 to June 30 2011, had improved from the comparative period, driven by its global diversification and broad business mix.
"Overall gross margins have improved and the group continues to benefit from operating leverage," it said.
"Based on current exchange rates and trading conditions, the group's forecasts for the financial year ending February 28 2012, remain unchanged," Datatec said.
The forecasts, published in May, were for revenues of between $4.8bn and $5.1bn, profit after tax of approximately $84m.
Underlying earnings per share was seen at approximately 47 US cents and earnings and headline earnings per share were expected at approximately 42 US cents.
CEO Jens Montanana said: "Our global diversity and broad business mix have continued to enable us to grow revenues and improve margins, in line with our expectations, despite varying economic conditions around the world. South America and Asia remain Datatec's strongest performing markets."
The group noted that Westcon's solid financial performance during the previous financial year had continued during the period, with revenues and profitability showing an improvement over the comparative period. Gross margins had increased due to a more favourable product mix and operating margins have expanded.
"The best growth was achieved in Asia Pacific, AIME (Africa, India and Middle East) and Latin America. Trading in North America remained resilient, with a particularly notable contribution from Canada and solid gross margin improvement in the US. Gross margins also improved in Europe," it said.
Datatec said that the steadily improving performance of Logicalis from the end of previous financial year had continued, with revenues and gross profits improving over the comparative period. Operating margins increased due to good operating leverage.
"Growth was particularly strong in Latin America, primarily driven by increased capital investment by telecommunications service providers. Business remains satisfactory in the other regions. The UK is performing well, despite local economic weakness and good progress is being made in the US in new business segments. Asia is continuing to develop regionally with a joint venture initiative recently agreed in Indonesia with Metrodata, our local business partner," it said.
The group said it expected to release its results for the six months ending August 2011 on October 12.
Releasing its in an interim management statement, Datatec said revenues and operating profits in the period from March 1 2011 to June 30 2011, had improved from the comparative period, driven by its global diversification and broad business mix.
"Overall gross margins have improved and the group continues to benefit from operating leverage," it said.
"Based on current exchange rates and trading conditions, the group's forecasts for the financial year ending February 28 2012, remain unchanged," Datatec said.
The forecasts, published in May, were for revenues of between $4.8bn and $5.1bn, profit after tax of approximately $84m.
Underlying earnings per share was seen at approximately 47 US cents and earnings and headline earnings per share were expected at approximately 42 US cents.
CEO Jens Montanana said: "Our global diversity and broad business mix have continued to enable us to grow revenues and improve margins, in line with our expectations, despite varying economic conditions around the world. South America and Asia remain Datatec's strongest performing markets."
The group noted that Westcon's solid financial performance during the previous financial year had continued during the period, with revenues and profitability showing an improvement over the comparative period. Gross margins had increased due to a more favourable product mix and operating margins have expanded.
"The best growth was achieved in Asia Pacific, AIME (Africa, India and Middle East) and Latin America. Trading in North America remained resilient, with a particularly notable contribution from Canada and solid gross margin improvement in the US. Gross margins also improved in Europe," it said.
Datatec said that the steadily improving performance of Logicalis from the end of previous financial year had continued, with revenues and gross profits improving over the comparative period. Operating margins increased due to good operating leverage.
"Growth was particularly strong in Latin America, primarily driven by increased capital investment by telecommunications service providers. Business remains satisfactory in the other regions. The UK is performing well, despite local economic weakness and good progress is being made in the US in new business segments. Asia is continuing to develop regionally with a joint venture initiative recently agreed in Indonesia with Metrodata, our local business partner," it said.
The group said it expected to release its results for the six months ending August 2011 on October 12.
