Logicalis and Westcon parent Datetec's share price plunged this morning as it admitted restructuring and currency effects have hit its full-year profits.
The South Africa-based group's shares lost more than a tenth of their value after it warned that EBITDA for its year ending 29 February 2016 is set to be 22 per cent behind the previous year's tally of $206.4m.
Full-year revenues are set to be flat at $6.5bn, it added in a trading update this morning.
Datatec said profits had been hit by the strength of the US dollar and foreign exchange losses, particularly in Angola.
Ongoing restructuring at distribution arm Westcon's EMEA business, as well as VAR arm Logicalis' UK business, also took its toll on the bottom line it added.
"The restructuring actions are expected to deliver operating improvements while mitigating actions in Angola have already taken effect," Datatec said. "The Group has increased its provision against trade receivables to reflect the weaker economic conditions in some markets."
Johannesburg-listed Datatec's full-year results are due out on 11 May.
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