Datatec, the South African IT stalwart and owner of Westconand Logicalis, is anticipating a return to growth in the second half of itsfiscal year, after publishing an interim management statement for the threemonths to 31 December 2009.
The group said it had now returned to revenue growth in allits divisions, after weak demand impacted the business last year.
Networking distie Westcon and system integrator Logicaliswere both singled out for praise.
Westcon saw third quarter revenues up sequentially, and improved profitability,and is understood to be reaping the benefits of some drastic cost-cuttingmeasures early on in the recession. Its European business remained stable,while highest growth was seen in the emerging MEA and Indian sectors.
Meanwhile, trading at Logicalis improved over the first halfof the year, said Datatec in a statement, although the unit continues to beaffected by project delays. Its UKarm was seen performing particularly well in the closing weeks of 2009, thankslargely to the IBM year end.
“We are very pleased to see that all parts of the Group arenow showing revenue growth, with Logicalis appearing to pass its inflectionpoint at the end of 2009,” said CEO Jens Montanana.
“The inherent leverage in our business model is beginning toshow through as the cost reductions initiated over a year ago provide a solidbasis for capturing the benefits of any revenue growth,” he added.
Datatec stood by its previous full-year forecast sales ofbetween $3.7bn and $4bn (£2.3bn)
The group’s financial year draws to a close at the end ofFebruary, and preliminary full-year 2010 results are due in May.