Westcon delivers growth for Datatec

A strong performance from Westcon helped Datatec deliver a solid set of numbers for its fiscal year

Westcon and Logicalis delivered for owner Datatec in its last fiscal year with the distributor and consultancy operations enjoying a decent second half to the year.

Group revenues increased 13.3% to $6.4bn up from $5.7bn, with Westcon delivering double digit growth of 19.4% with Logicalis producing a 1.1% decline.

Datatec's pre-tax profits for the 12 months to 28 February also improved to $140.2m from $101.8m.

Westcon saw its revenues climb to $4.9bn with operating profit also climbing to $100.2m from $62m in the previous year.

Some of the areas that Westcon has been operating in that have proved to be lucrative include the cloud and security with the relationship with Palo Alto being cited as an example of how it can develop vendors.

The results also highlighted the move in August last year to acquire cloud platform player Verecloud as one that provided more depth to the distributor's own services offering.

Logicalis delivered revenues of $1.5bn, which were down 3% organically, as a result of lower sales in its main vendor categories, including Cisco, IBM and HP.

Services revenues were up by 7.9%, which the results stated reflected the way the business was developing as customers looked for more support.

The results highlighted the loss of a long-term contract with the Welsh Assembly Government as a major blow for Logicalis, stating that, "the UK results were significantly impacted" by the deal going elsewhere.

Jens Montanana, chief executive of Datatec, said that the Group's revenue growth had been boosted by the performance of Westcon and Logicalis had seen an improved second half to its fiscal year.

"We expect our diverse operating portfolio to continue to deliver revenue growth, as Logicalis adapts its capabilities to address cloud-based infrastructure opportunities and Westcon increases its momentum with global vendors," he said.

Read more on Security Network Services