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Datatec riding economic storm

Simon Quicke

The ongoing challenges in the Eurozone with growth yet to kick in have been name checked as an issue dogging performance by Westcon and Logicalis owner Datatec.

The channel player issued an interim statement indicating that the problems that started in Europe have now spread globally but because of its strength and depth it has been able to ride out the storm and it is holding to its original forecasts.

In May the firm published forecasts predicting revenues of up to $5.8bn and post tax profits of around $104m for the fiscal year ending 28 February 2013.

"The diversity of our business streams and global footprint has once again enabled the Group to improve revenues and underlying earnings in a difficult environment," said Jens Montanana, CEO at Datatec "Although the outlook has become more uncertain, the defensive nature of our business model continues to be a strong asset."

Drilling down into the performance of Westcon and Logicalis there was a slight warning that operational profitability at the distribution arm had not grown in line with revenues as margins dropped and foreign exchange rates took their toll.

The UK performance of Logicalis was singled out in the interim statement as a positive with a strong start to the year from the the channel player.


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