Westcon and Logicalis International achieved “excellent” and “strong” fiscal 2024 results, respectively, South Africa-headquartered parent Datatec said this morning.
Johannesburg-listed Datatec saw revenues swell 6.1% to $5.5bn in its year to 29 February 2024, with CEO Jens Montanana bullish on the prospect of AI boosting its performance further in FY2025.
“Exceptional” Westcon
Distribution arm Westcon International saw revenues power up 7.7% to $3.69bn in what Montanana dubbed an “exceptional performance”.
This was thanks to “strong demand for network infrastructure and cyber security solutions”.
Some 61% of the revenue total was generated in Europe, with the Middle East and Africa contributing a respective 26% and 13% to the total.
The Cisco, Check Point, Palo Alto Networks and Juniper Networks ally also saw adjusted EBTIDA power up 26% to $120.2m.
“Strong” Logicalis
Integration and managed services brand Logicalis had a more mixed year, as a “strong” performance at Logicalis International was counter-balanced by “numerous challenges” at Logicalis Latin America.
The former, which operates in North America, EMEA and AsiaPac, saw revenues inch up 1.5% to $1.25bn and adjusted EBITDA rise by 11.9% to $74.1m.
Strategic review ongoing
Datatec continues to address the “persistent gap” between its group valuation and the inherent value of its subsidiaries via a Strategic Review, Montanana said.
To this end, new executive long-term incentive plans were put in place for Westcon’s and Logicalis’ management last year. In December 2023, the Group invested further in management consultancy Mason Advisory, boosting its shareholding from 42.5% to 80%, meanwhile.
The group maintained a “strong operational performance” in the second half of the year, Montanana claimed.
“Despite uncertain political and economic challenges in many parts of the world, all the Group’s divisions are expected to deliver improved financial performance in FY25 and benefit from strong technology fundamentals,” he said.
“The adoption of artificial intelligence should lead to a new cycle of PC and networking refresh.”
