Feeds

Rest of world catching Eurozone plague, warns Datatec

Bring out your dead, bring out your dead

Top 5 reasons to deploy VMware with Tegile

Economic malaise in the Eurozone is spreading to the global stage, channel behemoth Datatec has warned.

Despite this, the parent of distributor Westcon and integrator-cum-managed-services-provider Logicalis said in an interim management statement that sales had risen across the group in the last four months.

"Trading and underlying earnings are continuing to improve but growth is slowing in a weakening economic environment as the fall out of the Eurozone economic problems have spread globally," Datatec said.

In a footnote, it added that underlying profits had gone up but "unrealised" foreign exchange losses compared to gains in the same period a year ago have "impacted operating profit growth".

Asia and Latin America remained regional boons, but Europe was still "weak" and the US had "slowed".

Enterprise outfit Westcon reported rising turnover in all regions, but said it faced margin pressure in North America and Europe, which meant operating profit had "not grown in line with revenues".

Integration arm Logicalis had a "relatively strong start to the year" and the UK biz was "good despite weak economic conditions", Datatec said. Operations in the US and South America also reported improvements.

Sales at the British subsidiary declined by 1 per cent to £185.8m in fiscal 2012 ended February and EBITDA fell 24 per cent to £6.09m.

Ian Cook, CEO at Logicalis, told The Channel that the UK business had made a "reasonable start to the year but I wouldn't say there are head winds and it's all tickety-boo".

"It's down to the management and that fact that we are more than just a reseller: we're an infrastructure integrator, a managed services provider and cloud provider.

"Those businesses need vigilant management in this current economic climate," he said.

Cook said none of the hardware vendors were posting superb results and Logicalis's services operation was coming to the fore.

"Some customers are looking to sweat their assets and IT services help them do that," he said.

Momentum in the Consulting Services division continued, Datatec said, with Analysys Mason boosting Datatec's top and bottom lines, outweighing the "more challenging sales environment at both Intact and Via Group". ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.