Datatec on course to join $5bn club

Westcon and Logicalis parent projecting to post double-digit revenue spike in FY12

Westcon and Logicalis owner Datatec has issued an upbeat interim management statement (IMS) and is projecting to post double-digit top-line growth this year.

The South African firm claims revenue and operational profit for the first four months of its fiscal year, which began on 1 March, are up on last year. Logicalis posted an increase in sales and operating margins, according to Datatec, after a stellar performance in the Latin America region. In the UK, the integrator is reportedly "performing well despite local economic weakness".

Westcon was also singled out for praise by its parent company, with the distributor increasing its top line and boosting margins, thanks to "a more favourable product mix". The comms, networking and security specialist enjoyed particularly robust growth in Asia Pacific, Africa, India, the Middle East and Latin America during the year's opening third.

Datatec's consulting operations, which include Intact Integrated Services and Analysys Mason, endured a tougher start to the year.

"Although trading conditions are showing signs of improvement," said the IMS, "discretionary spending amongst this division's corporate and telecommunications customer base remains constrained".

Datatec is forecasting full-year revenues for FY12 will reach $4.8bn (£3bn) to $5.1bn, representing year-on-year growth of between 11 and 19 per cent. Post-tax profit is projected to reach $84m (£52m).

Jens Montanana, chief executive of Datatec, 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."