Datatec's operating profit drops to US$122m

15 May 2014

Global technology firm Datatec has maintained its dividend per share of 17 US cents for the year to February even though operating profit dropped from US$141,3m last year to US$122m for this year.

Datatec's Chief Executive Jens Montanana says the outlook for the year will produce another robust performance for the company. Image: Datatec

The group maintained top line growth despite the operational difficulties faced by its largest division‚ Westcon‚ with revenues increasing by 8% to US$5.69bn.

The company said despite the challenging trading environment‚ it had maintained its strong market position with no particular dependency on any single market‚ territory or technology sector and has continued to improve its customer mix.

Datatec's Chief Executive Jens Montanana said the group continued to grow revenue and gross margins had been stable.

"We remain confident in the sustainability of our long-term growth strategy and have maintained our capital distribution at the same level as the previous year," he said.

Montanana said the secular trends in the IT industry remain favourable.

"In the current financial year‚ we anticipate another robust performance for Logicalis while Westcon will continue to consolidate and focus on improving operational leverage‚" he said.