Datatec Limited Half year end trading statement (1303L)

TIDMDTC

RNS Number : 1303L

Datatec Limited

29 September 2016

29 September 2016

Datatec Limited

Half year end trading statement

Datatec Limited ("Datatec" or the "Group", JSE and LSE: DTC) is in the process of finalising its interim results for the six months ended 31 August 2016 ("H1 FY17"), which will be released on Wednesday, 19 October 2016.

On 20 July 2016, Datatec stated that Group revenues for the first four months of the financial year were 11% lower than in the comparable period but that gross margins improved. This reflected a much stronger US Dollar in the period and exceptionally strong revenue growth in the prior comparable period.

The Group now expects for H1 FY17:

   --      revenues of $3.04 billion (7.6% lower than H1 FY16: $3.29 billion); 
   --      gross margin of 13.8% (H1 FY16: 13.1%); 

-- underlying* earnings per share to be approximately 12.5 US cents (24.7% lower than H1 FY16: 16.6 US cents); and

-- earnings per share and headline earnings per share to be approximately 9.1 US cents (24.2% lower than H1 FY16: 12.0 US cents).

Based on current trading and prevailing exchange rates, the Group expects underlying* earnings per share for the full year to 28 February 2017 (FY17) will be better than the prior year (FY16)**.

Underlying* earnings per share in the second half of FY17 are expected to be sequentially better than in H1 FY17 and comparatively better than the second half of the previous financial year.

The financial information on which this trading statement is based, and any forecast financial information contained in this announcement, has not been reviewed and reported on by Datatec's external auditors.

In terms of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20% from those of the previous corresponding period.

* Excluding impairment of goodwill and intangible assets, profit or loss on sale of investments and assets, amortisation of acquired intangible assets, unrealised foreign exchange movements, acquisition-related adjustments, fair value movements on acquisition-related financial instruments, restructuring costs and the taxation effect on all of the aforementioned.

** This forward-looking statement by its nature involves risk and uncertainty, and although the Group has taken reasonable care to ensure the accuracy of the information presented, no assurance can be given that such expectations will prove to have been correct.

The Group has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in this forward-looking statement but there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. It is important to note, that:

(i) the forward-looking statement indicates the Group's expectations and has not been reviewed or reported on by the Group's external auditors;

(ii) actual results may differ materially from the Group's expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate;

(iii) the Group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on this forward-looking statement; and

(iv) the Group disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, other than as required by the JSE Limited Listings Requirements and/or the AIM Rules.

Enquiries:

 
 Datatec Limited (www.datatec.com) 
 Jens Montanana - Chief Executive        +44 (0) 1753 
  Officer                                     797 118 
 Ivan Dittrich - Chief Financial       [phone] 
  Officer                                        3301 
 Wilna de Villiers - Group             [phone] 
  Investor Relations Manager                     1013 
 Jefferies International Limited - Nominated 
  Advisor and Broker 
                                      [phone] 
 Nick Adams/Alex Collins                         8000 
 finnCap - Broker 
                                      [phone] 
 Stuart Andrews                                  0500 
 Instinctif Partners 
 Adrian Duffield/Chantal Woolcock     [phone] 
  (UK)                                           2020 
 Frederic Cornet/Pietman Roos          [phone] 
  (SA)                                           3030 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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September 29, 2016 02:00 ET (06:00 GMT)