JOHANNESBURG, November 13 – Information, communications and technology firm Datatec on Monday reported underlying earnings per share of 1.4 US cents for the six months to end-August – a significant decline from the 12.5 cents per share it reported in the previous half-year.
The board is not declaring an interim dividend, Datatec said in a statement. It added that it expected a better performance from its Logicalis division in the second half of the 2017/18 year. Logicalis is expected to benefit from the contribution of Packet Systems Indonesia, which was acquired in September, and a major multi-year contract win in Latin America.
“Although the first half headline results were disappointing, we have generated exceptional value through the successful sale of our Westcon Americas business and recently the smaller disposal of the non-core Logicalis SMC business,” Jens Montanana, Chief Executive of Datatec, said in a statement.
Datatec sold Westcon Americas and 10% of Westcon International to SYNNEX Corporation for US$830 million. It also sold Logicalis SMC’s Dutch business unit for US$42 million. Datatec plans to return US$350 million in cash to shareholders.