Datatec laments 'disappointing' H1

Logicalis becomes main profit engine following sale of Americas business

South African IT group Datatec has reported "disappointing" figures for the first half of its fiscal 2018.

For the six months ending 31 August, Datatec saw revenue drop 1.6 per cent to $2.99bn (£2.28bn).

The results include contributions from its Americas distribution arm, which it sold to Synnex on 1 September; and its Dutch Logicalis SMC arm, which it sold to DXC Technology in October.

Datatec also saw revenue drop with these units taken out of the equation. Continuing operations - which houses the APAC and EMEA Westcon businesses, and Logicalis - saw revenue drop seven per cent to $1.84bn.

Datatec CEO Jens Montanana said: "Although the first-half headline results were disappointing, we have generated exceptional value through the successful sale of our Westcon Americas business and recently the smaller disposal of the non-core Logicalis SMC business.

"The outlook for Logicalis, which contributed most of our profits, is increasingly positive, with a number of important developments set to support an overall improvement in H2. We are moving rapidly to create the appropriate structure in Westcon International to support the direction of the business."

Following the sale of the Americas business, Logicalis contributes over four times the revenue of the remaining Westcon business.

Datatec said it will continue "streamlining" the Westcon business to improve its financial performance in the second half of the year.