Datatec expects full year gross profit to rise about 10 to approximately 998 million after stronger demand across its international technology divisions extended the momentum built in the first half of the year, the South African-founded group said Tuesday in a trading update ahead of its May 26 results.
The company said gross profit gives a more accurate picture of underlying performance than revenue because a growing portion of its software and services business is recorded on a net basis, meaning topline comparisons can understate operational progress as the group shifts further into higher-value offerings.
The strongest divisional performance came from Westcon International, which posted gross profit growth of 13 from a year earlier. Datatec described the unit's second half as very strong. Logicalis International followed with 8 growth and what Datatec called an exceptional performance. Logicalis Latin America, the smallest contributor to the growth picture, posted a 1 increase alongside what management described as a broader improvement in financial performance compared with the prior year.
