Westcon and Logicalis on song for Datatec

South African IT group cheers "robust recovery" at distie arm Westcon and "comparative improvement" at integrator arm Logicalis

Both of Datatec's principle arms - Westcon and Logicalis - were firing well in the second half of the South African IT group's fiscal year, according to a trading update.

For the 12-month period to the end of February, Datatec expects total sales to come in at around $6.4bn (€6bn), which would represent an increase of 12.5 per cent on the prior year.

But despite a strong showing from Westcon in its native North America, the company has warned that the weakness of currencies outside the US has already begun to affect its performance, and will continue to do so this year.

Earnings per share are forecast to be in the range of $0.41 to $0.43, compared with a little less than $0.36 in FY14. Stockholders have been told to expect a dividend of about $0.17 for every share in their possession.

"Westcon has continued its robust recovery over the previous year with strong growth in sales and market share gains, particularly in North America," Datatec stated. "Logicalis delivered a comparative and sequential improvement in the second half of FY15, leading to revenue and EBITDA growth year-over-year."

It was not all good news for Datatec though, with the firm noting that the "marked strengthening of the US dollar on foreign exchange markets over recent months" has negatively impacted its operational results outside the US. The company's financials for the recently begun year are also expected to be affected by the US currency's ongoing comparative strength.