Datatec warns on EPS, notes possible sale of a major share of Westcon-Comstor's ops for $800m
Datatec warns underlying and headline EPS for full-year 2017 are seen more than 50% lower than in 2016, and notes a possible sale of a major share of Westcon-Comstor's operations for more than $800m.
Datatec Ltd. (DI)
310.00p
16:34 07/12/17
Software & Computer Services
2,390.57
17:09 25/04/24
"There can be no certainty that the transaction will be completed, nor as to the precise terms on which the transaction might be completed," said Datatec.
Looking at Datatec's trading, it said it was still in the process of finalising the results for full-year 2017 and would provide a more detailed trading statement as soon as practicable.
"The year over year expected decline in earnings is as a result of a worse than expected result in Westcon-Comstor," it said.
"There was a decline in fourth quarter financial performance in the Europe Middle East and Africa (EMEA) region."
Datatec said Westcon-Comstor had experienced disruption to the business as a result of final stages of SAP implementation in EMEA.
"Westcon-Comstor has made adjustments to the operating model and Datatec expects this to support a rapid recovery," said Datatec.
It added that Logicalis trading was in line with management's expectation.
At 13:53 GMT, shares in AIM-traded Datatec were up 4.69% to 335p each.