Logicalis and Westcon revenues up for Datatec

Chief exec Jens Montanana claims Logicalis performed well despite 'currency headwinds'

Datatec saw revenues for both its Logicalis and Westcon arms rise in the first half of its financial year.

For the six months ending 31 August 2018 Logicalis saw revenue climb 14 per cent year on year to $775.5m, while operating profit rose 60 per cent to £25.6m.

Sales at Westcon International were up five per cent to $1.2bn.

Datatec sold the Westcon Americas business to Synnex last year.

Datatec chief executive Jens Montanana said: "The Group's first half results came in ahead of our expectations, backed by improved operational execution across all divisions.

"Logicalis performed well in the first half and produced good results despite emerging market currency headwinds, especially in its key Latin America region.

"Westcon International's recovery is underway and we are delivering on our commitments for this division with the ERP system now stable, the BPO reversal almost complete and central cost reductions on track.

"Looking ahead, we expect the improved operational and financial performance to continue for the remainder of the year. We are addressing the valuation gap through improved execution at Westcon International and the ongoing share buy."

Datatec said Logicalis' revenue was boosted by a "multi-year" project in Latin America.

Meanwhile at Westcon, Datatec said that its reshaping following the sale of the American business is "well under way". It also claimed that cost-cutting initiatives have contributed to the solid numbers.

The firm added that it expects the financial performance in the first half of the year to carry across in H2.