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Datatec Now Expects H1 Underlying EPS To Be Down 84%-92% YoY - Quick Facts

Datatec Limited (DTC.L) reported that for the first-half of fiscal 2018, the Group now expects underlying earnings per share will be between 1 and 2 US cents, 84% - 92% below previous year. Headline loss per share will be between 5 and 6 US cents compared to profit per share of 9.1 US cents, last year. Consolidated revenue is expected to be $2.99 billion, compared to $3.04 billion, a year ago.

Datatec said the year-over-year decline in earnings is primarily as a result of a worse performance in the Group's Westcon subsidiary. Westcon-Comstor continued to experience disruption to the business as a result of the final SAP implementation in Europe, Middle East and Africa. Earnings were further impacted by higher finance charges, amortisation expense and effective tax rate than prior year.

Datatec Board said it will provide detail on the use and distribution of the cash proceeds from the SYNNEX transaction with its interim results on 13 November 2017. The proceeds of the sale comprise $630 million in cash on completion and up to $200 million payable as a cash earn-out. The Board intends to retain $130 million for various operational and working capital and expansion funding requirements. The Board will consider returning the majority of the remaining $500 million to shareholders by way of share repurchases and / or a specific dividend.

by RTT Staff Writer

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