Barendrecht, 7 november 2007 – Last week Datatec Group, the parent company of Westcon Convergence, released its unaudited half-year results report. This report refers to Westcon's positive performance and growth.
Datatec Group is an international ICT networking and related services business with operations in many of the world's leading economies. One of the Group's main lines of business comprise: the global distribution of advanced networking and communications convergence products performed by Westcon.
Financial highlights Datatec (unaudited results for the six months ended 31 August 2007)
- Revenue up 26% (11% organic) to $1.92 billion (2006 restated: $1.52 billion)
- Gross margin percentage improved to 12.9% (2006: restated: 12.6%
- Underlying EBITDA increased by 26% to $61.0 million (2006: $48.4 million)
Of the Group's $1.92 billion revenue in the period, 43% was generated from North America, 42% from Europe, 6% from Asia Pacific, 2% from South America and 7% from Middle East and Africa.
Westcon completed two significant acquisitions in Europe during April and May respectively; NOXS Europe B.V, a leading European security distributor and Crane Telecommunications Group, a leading UK-based European value added distributor of voice, data and converged communications solutions.
Westcon generated revenues of $1.39 billion, up by $256 million or 23% (2006 restated: $1.13 billion). Of this, acquisitions accounted for $123 million of the growth and existing businesses $133 million. The revenue growth was attributable to all three regions. As a result of the two European acquisitions, Europe now represents 45% of Westcon revenue compared to 40% for the comparable period in 2006.
The acquisitions also further balance the vendor mix, with Cisco now accounting for 57% of Westcon revenue compared to 61% for the comparable period in 2006. Westcon's other major vendors, Nortel and Avaya constituted 11% and 10% of total revenue respectively (2006: 13% and 9%) and there was strong growth in revenues from other vendors which accounted for the remaining 22% of revenue (2006: 17%).
Gross margin increased to 9.8% (2006 restated: 9.2%) contributing to a 32% increase in gross profit to $136.4 million (2006: $103.5 million). The gross margin increase was attributable primarily to Europe and Asia Pacific.
The acquisitions are important steps in Datatec's strategic plans to leverage Westcon's financial strength and scale of operations, including both broadening and strengthening its vendor relationships. These businesses also bring new opportunities in convergence, security and mobility to both new and existing customers. These acquisitions are being successfully integrated into Westcon and are performing well.
For more information please visit
www.datatec.co.za