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.

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."

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

Recommended

Share tips of the week – 19 August
Share tips

Share tips of the week – 19 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
19 Aug 2022
How to invest in smart factories as the “fourth industrial revolution” arrives
Share tips

How to invest in smart factories as the “fourth industrial revolution” arrives

Exciting new technologies and trends are coming together to change the face of manufacturing. Matthew Partridge looks at the companies that will drive…
18 Aug 2022
How to invest today? Look to the past, not the future
Investment strategy

How to invest today? Look to the past, not the future

The past few years have seen so many changes to our way of life that many people said we had entered a “new normal”. But as it turns out, the new norm…
18 Aug 2022
A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022

Most Popular

How to protect your wealth as inflation hits new record highs
Investment strategy

How to protect your wealth as inflation hits new record highs

UK inflation has hit a new record high of 10.1%. It's going to hurt, says Dominic Frisby. Here's how you can protect your wealth.
17 Aug 2022
How to cut your energy bill
Personal finance

How to cut your energy bill

The energy-price cap will almost double in the autumn. What does this mean for your money, and how can you alleviate the squeeze? Ruth Jackson-Kirby h…
17 Aug 2022
Are GSK’s legal troubles a threat to the firm’s survival?
Biotech stocks

Are GSK’s legal troubles a threat to the firm’s survival?

Pharmaceutical giant GlaxoSmithKline is facing legal action over heartburn drug Zantac that has seen billions wiped off its market value. Rupert Hargr…
16 Aug 2022