Coalition austerity plan unsettles Datatec

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Coalition austerity plan unsettles Datatec

Alex Scroxton

An interim management statement released today by Datatec has highlighted improving profitability across the group's constituent firms, but the firm warned that the long term impact on its SI division, Logicalis, of government austerity measures in the UK was "unclear."

For the three months to the end of June, Datatec said that Logicalis put in a steadily improving performance, with the US, South America and APAC all strong performers.

The UK performed "satisfactorily", although whether or not this will remain the case is still unknown.

Over at networking distie Westcon, supply constraints continued to ease and lead times improved across the quarter. The distributor is currently looking to enhance its earnings through re-financing activities by taking advantage of supplier prompt payment arrangements.

CEO Jens Montanana, who yesterday announced plans for an ambitious roll-up of companies in the networking security space after investing in a UK software firm called Corero, said today that the improvement in trading and profitability reported in the firm's recent ful-year results was ongoing.

"We remain cautiously optimistic for the year, in line with our previously published forecasts," he added.

The group's previous forecast, made at the end of a rocky financial year, still stands; Datatec is targeting FY sales of around $4.25bn (£2.76bn) and post tax profits of around $58m.

H1 results for the six months ending 31 August are due in October. 


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