Datatec expects fall in revenue to continue into 2017

Datatec, an International ICT solutions and services group, released its trading update on Thursday showing its revenue for the first four months falling by 11% and expects the trend to continue into 2017.

Despite the drop in revenue, gross margins improved due to the stronger US dollar and “strong” revenue growth in the prior period, according to the firm.

The group’s expectations for the first half of 2017 entail 7.6% lower revenues of $3.04bn and a 13.8% rose in gross margin.

Its predictions for underlying earnings per share are 12.5c which is 24.7% lower than the previous period. Earnings per share and headline earnings per share are expected to be 24.2% lower at 9.1c.

The share price fell 3.64% to 265p at 0913 BST on Thursday.