Datatec's H1 pre-tax profit slips amid challenging global conditions

Datatec Ltd has recorded a lower first-half pre-tax profit after being buffeted challenging global conditions, with a strong US dollar impacting translated earnings.

The international information and communications technology group said pre-tax profit for the half to 31 August was $34,328, from a profit of $44,929. Revenue was $3.04m, from $3.29m. Interim distribution was 4.2 cents a share, from 8.0 cents.

"There are now however signs of improved confidence in emerging markets and we expect a continued slow recovery in these markets, with more stable currencies," said chief executive Jens Montanana in a statement.

"Our multi-year investment in Westcon's transformation is entering its final stages with the ERP roll-out and BPO initiative expected to end by June 2017," he added.

"Based on our strengthened position in key markets, we anticipate a sequentially and comparatively better second half of full-year 2017."

At about 14:14 BST, shares in AIM-quoted Datatec were down 5.02% to 265p.