Johannesburg‚ Dec 3 (I-Net Bridge) - International information and communications group Datatec (DTC) said on Monday it now considered it unlikely that the group would reach its published forecasts for the current financial year.
This is after its subsidiary Westcon's produced a weaker than expected third quarter performance which prompted Datacon to issue a trading update.
"Since the Group published its half year results on 17 October 2012‚ Westcon's trading in Q3 has been slower than expected and comparatively lower than the same period last year. Continued weak conditions in Europe‚ business disruption in North America due to hurricane Sandy and lower than expected Federal business have negatively affected trading so far in the second half.
"Logicalis continues to trade strongly and in line with expectation. Demand in the Consulting Services division has weakened in the second half‚" Datatec said.
The group's published forecasts for the financial year ending 28 February 2013 are for revenues of between $5.5 billion and $5.8 billion‚ profit after tax** of approximately $104 million‚ underlying* earnings per share of approximately 55 US cents and earnings** and headline earnings** per share of approximately 50 US cents.
The group will issue its next Interim Management Statement (IMS) as usual in mid-January 2013. This will include an updated forecast for the financial year to 28 February 2013 and encompass the important trading in December.
Separately Dean Douglas‚ President and CEO of Westcon Group‚ is presenting at an investor conference in Cape Town today. No new material information will be provided during the day. Copies of the presentation will be available on Datatec's website.
* Excluding goodwill and intangibles impairment‚ amortisation of acquired intangible assets‚ acquisition-related adjustments‚ profit or loss on sale of assets and businesses‚ fair value movements on acquisition-related financial instruments and unrealised foreign exchange movements.
** Forecasts for profit after tax‚ earnings per share and headline earnings per share do not take into account any fair value gains or losses on acquisition-related financial instruments (including put option liabilities)‚ which are required under IFRS.