Datatec issues profit warning

Information and communications technology group Datatec warned it is unlikely to reach its forecasts for the year ending February 2013 after a weaker than expected third quarter performance from Westcon.

"Since the group published its half year results on October 17th 2012, Westcon's trading in Q3 has been slower than expected and comparatively lower than the same period last year," it said in a trading update.

"Continued weak conditions in Europe, business disruption in North America due to hurricane Sandy and lower than expected Federal business have negatively affected trading so far in the second half."

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

On a brighter note, Logicalis continues to trade strongly and in line with expectation. However demand in the consulting services division has weakened in the second half.

The group's published forecasts for the financial year ending February 28th 2013 are for revenues of between $5.5bn and $5.8bn, profit after tax of roughly $104m, underlying earnings per share of approximately 55 US cents and earnings and headline earnings per share of approximately 50 US cents.

Datatec will issue its next interim management statement mid-January 2013 which will include an updated forecast for the financial year to February 28th 2013 and encompass key December trading period.

CJ