JSE-listed technology firm Datatec has posted its revenue report and comments that, despite the harsh business environment, it still shows positive results.
According to the unaudited interim results for the six months ending August 31 2012, the company made a marginal profit of 7 percent to US$2.62 billion.
“As we highlighted in our IMS statement in July, overall revenues and underlying earnings are continuing to improve but the rate of growth has slowed as the macro-economic climate has become more uncertain. This became more pronounced in the second quarter in all regions with the exception of Latin America,” Jens Montanana, Chief Executive of Datatec, said.
Most of the company’s revenue is derived from its North American business, which constitute of 34 percent of the profits. Europe, Latin America, Asia and Africa/India/Middle East make up 31 percent, 14 percent, 13 percent and 8 percent of the revenues.
Datatec also reported that its acquisition of businesses across the country is doing well for its books. In July, the company acquired 100 percent of the share capital of the Afina Group (“Afina”) by Westcon, a subsidiary of the company.
“The acquisition significantly expands Westcon’s geographic footprint in 12 countries across Latin America, the Caribbean, Europe and North Africa (including Brazil, Mexico, Spain, Portugal, France and Morocco,” the company said.
“In May 23, Datatec acquired, on behalf of Westcon, the 33.1 percent interest in its African subsidiaries which it did not already own (excluding Westcon SA (Pty) Ltd) collectively “Westcon Africa” in order to secure 100 percent ownership of those businesses,” the report said.
Westcon has become the biggest revenue earner for Datatec with strategic acquisitions. The subsidiary brought in 73 percent of the revenue.
The company maintains their 2013 outlook profit to be between US$5.5 billion and US$5.8 billion despite what they term as an uncertain economic outlook.
The company, which is an ICT solutions provider, has its operations in over 50 countries and a global workforce around 6,000 people. Its subsidiaries include Westcon, Logicalis and Consulting Services.