Datatec benefits from more home workers


Datatec benefits from more home workers

Published Date: 2020-03-23 | Source: Stephen Gunnion | Author: Stephen Gunnion

Datatec benefits from more home workers

The ICT group says its Logicalis and Westcon division have reported rising orders for remote access computing, security and collaboration networks.

Datatec's shares surged as much as 50% on Friday after it said its new financial year had started on a strong note, supported by demand for remote computing and network solutions.

The ICT group said its Westcon division had reported rising orders since its new financial year started on 1 March, with order intake at Logicalis also expected to be ahead of last year. It said it had experienced limited supply chain interruptions as demand for remote access computing, security and collaboration network solutions rose.

The rapid spread of the Covid-19 virus across the globe had affected every region where it has operations and it said it had responded by closing a number of offices and encouraging most of its employees to work remotely where possible. Its warehouses continued to function with new protocol for care and safety for its employees and it had restricted business travel.

Datatec said all of its division reported a solid financial performance for the year to end-February. The turnaround in Westcon International continued, with a big improvement in profitability, while Logicalis was also expected to produce a strong results, especially in its Latin American region. Analysys Mason had another growth year, with much improved profitability too, it said.

The group provided no further detail on the possible listing of the Latin American business of Logicalis on Brazil's Brasil Bolsa Balcão (B3) stock exchange. Earlier this month it said it had appointed advisers to look into the possible flotation. It planned to retain a majority shareholding in the business if the listing went ahead.

Its shares closed 42% higher at R26 on Friday.

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