Datatec issues trading warning over Westcon sale

Impact of the sale of Westcon Americas to Synnex forces Datatec to issue market update

Datatec has issued a trading statement for the 2018 financial year, pointing the finger at lost revenue from Westcon Americas as it is sold to Synnex.

Listed companies are required to publish a trading statement as soon as "they are satisfied that a reasonable degree of certainty exists that the financial results ... will differ by at least 20 per cent from the previous corresponding reporting period".

Datatec admitted it has such concerns for its FY18 results, but it added that it does not yet have a reasonable degree of certainty of the specific percentage or range difference "in respect of its three earnings-per-share metrics compared to FY17".

"The group expects that for FY18, underlying earnings per share will be at least 20 per cent (at least 2.2 US cents) lower than the 11.0 US cents reported in FY17," said the Datatec statement.

"Headline earnings per share will be at least 20 per cent (at least 0.4 US cents) lower than the 2.0 US cents reported in FY17. Earnings per share will be at least 20 per cent (at least 0.28 US cents) higher than the 1.4 US cents reported in FY17."

Datatec stated that those outlooks are "primarily as a result of the sale of Westcon Americas to Synnex with effect from 1 September 2017, with the earnings from Westcon Americas therefore only being included in the FY18 earnings for a six-month period (compared to 12 months in FY17)."

Datatec added that it will release a further trading statement providing specific guidance on its three earnings-per-share metrics "as soon as practicable during the process of finalising the results for FY18".

It expects to release its full-year results for FY18 in mid-May.