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DATATEC GROUP

DATATEC GROUP. UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2006. DATATEC GROUP. Performance Highlights. Continuing strong revenue growth up 16% Big increase in earnings per share to 15.65 US cents EBITDA profits up 32% to $52m Margin expansion at all levels

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DATATEC GROUP

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  1. DATATEC GROUP UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2006

  2. DATATEC GROUP Performance Highlights • Continuing strong revenue growth up 16% • Big increase in earnings per share to 15.65 US cents • EBITDA profits up 32% to $52m • Margin expansion at all levels • Successful listing on AIM market of London Stock Exchange • Full transferability of shares between the two exchanges • All shares listed on both markets • 100% market capitalisation on both markets

  3. DATATEC GROUP Revenues ($ millions) Revenues grew by 16%

  4. DATATEC GROUP Revenues by Region Europe 36% Asia 7% South America 2% South Africa + ME 3% North America 52% North America remains dominant

  5. DATATEC GROUP Gross Profit ($ millions)

  6. DATATEC GROUP EBITDA ($ millions)

  7. DATATEC GROUP Total Headline Earnings Per Share (US cents)

  8. Opening Net Cash 132 EBITDA 52 Dividends (6) Working Capital (63) Acquisitions (24) Other (8) Movement in Net Cash (49) Closing Net Cash 83 DATATEC GROUP H1 FY2007 Cash Generation ($ millions) Net Cash ($ millions) • First dividend payment • Primary uses of cash: • one-off working capital investments • acquisitions • Strong closing next cash position

  9. AMG 6% DATATEC GROUP Segmental Analysis EBITDA Revenue Gross Profit AMG Logicalis 3% 36% AMG Logicalis 6% Logicalis 22% 20% MEA MEA MEA 4% 2% 3% Westcon Westcon 75% 54% Westcon 69%

  10. WESTCON GROUP

  11. WESTCON GROUP Highlights • Interim revenues up 10% to $1.26bn with increases in all geographies • Gross margin stable at 8.3% • Operating expenses trimmed back to 5.2% of revenue from 5.8% • EBITDA margins grew to 3.0% from 2.7% • Ronco acquisition in H1 has expanded Nortel convergence offerings • Big improvement in Europe’s financial contribution

  12. WESTCON GROUP Financial Performance Summary * Includes once-off benefits Financial Performance summary includes inter-group adjustments

  13. WESTCON GROUP Revenue Trend – Six Months $1,300 $1,200 $1,100 $1,000 $ millions $1,259 $1,163 $1,140 $900 $1,013 $800 $700 Sep-Feb Mar-Aug Sep-Feb Mar-Aug 2005 2006 2006 2007

  14. Europe 37% Asia Pac 9% 54% Americas WESTCON GROUP Revenue by Geography - % of Revenue Europe 36% Asia Pac 8% 56% Americas H1 FY 2006 H1 FY 2007 Consistent Geographic results

  15. Cisco 59% WESTCON GROUP Revenue Product Vendor Mix % Other Other Security Nortel 14% 15% Security Nortel 8% 10% 6% 12% Avaya Avaya 9% 8% Cisco 59% H1 FY 2006 H1 FY 2007 Cisco remains dominant vendor

  16. H1 FY 2006 H1 FY 2007 WESTCON GROUP Gross Margin % 12.0% 9.4% 10.0% 9.1% 8.5% 8.5% 8.4% 8.3% 7.8% 8.0% 7.0% 6.0% 4.0% 2.0% 0.0% Americas Europe Asia Pacific Total Including once-off benefits

  17. WESTCON GROUP Operating Expenses $68 6.6% 6.4% 6.2% 6.0% $66 5.8% 5.6% Operating Expense % 5.4% $64 $ millions 5.2% 5.0% $66 4.8% $62 $64 4.6% $63 $65 4.4% 4.2% $60 4.0% Sep-Feb Mar-Aug Sep-Feb Mar-Aug 2005 2006 2006 2007 Operating expenses relatively constant despite high revenue growth

  18. H1 FY2007 H1 FY2006 WESTCON GROUP EBITDA ($000’s) EBITDA increases across all geographic regions. $45.0 38.0 $40.0 $35.0 30.8 $30.0 26.7 24.7 $25.0 $20.0 $15.0 9.1 $10.0 4.2 $5.0 2.4 1.7 $0.0 Americas Europe Asia Pacific Total Note: Americas results include US non-operating subsidiaries

  19. WESTCON GROUP Consolidated Balance Sheet – Working Capital – US GAAP Note: Ratios based on trailing twelve month results

  20. WESTCON GROUP Consolidated Balance Sheet – Capitalisation – US GAAP ($ millions) Aug 2005 Feb 2006 Aug 2006 Cash $135 $166 $156 Working Capital Lines 86 67 79 Notes payable - 40 40 Net Cash* 9 23 1 Equity 287 284 306 Debt to Capitalization 0.31 0.33 0.34 Liabilities to TNW 1.69 1.85 1.88 *Includes inter-company loan payable to Datatec which is eliminated in consolidation

  21. $50 $0 -$50 -$100 -$150 -$200 ($30,701,555) ($59,842,704) ($76,872,694) ($32,122,321) ($139,544,122) -$250 Jul-04 Jul-01 Jul-02 Jul-03 Jul-05 Jul-06 Mar-03 Nov-01 Nov-02 Nov-03 Nov-04 Nov-05 Mar-01 Mar-02 Mar-04 Mar-05 Mar-06 WESTCON GROUP Net Cash / Debt Trend ($ millions)

  22. WESTCON GROUP Headcount by Region

  23. WESTCON GROUP Future Outlook • Cautious optimism with continued organic growth for the second half • Increasing the focus on acquisition driven growth • Enhanced logistics in North America should drive efficiency gains • Further improvements in margins and profitability expected in Europe

  24. LOGICALIS GROUP

  25. LOGICALIS GROUP Highlights • Revenues up 39% to $343m • Organic growth of 11% • Gross margin maintained at 20% • EBITDA profits up 59% to $11.8m • Continued growth in profitability in both the UK and US operations • One acquisition completed during H1 FY 2007 • Offices opened in Chile and Peru • Acquisition of IBM partner completed 1 September in US

  26. LOGICALIS GROUP Financial Performance Summary Increased scale has produced stronger results in FY 2007 Notes: Includes Datatec level inter-company transactions which eliminate on Datatec consolidation

  27. South America 6% South America 32% UK 26% 5% UK Germany Germany 1% 1% North America North America 67% 62% H1 FY 2006 H1 FY 2007 LOGICALIS GROUP Revenue Geographic Split – as % of Revenue North America generated 62% of revenue

  28. ProfessionalServices 7% Maintenance 7% ProfessionalServices 8% Maintenance 8% ManagedServices 5% Managed Services 4% Product 81% Product 80% H1 FY 2006 H1 FY 2007 LOGICALIS GROUP Revenue Segmental Split Proportion of product in sales mix relatively constant

  29. IBM IBM 32% EMC 38% EMC 4% 2% Others 10% 12% HP 28% Cisco HP Cisco 26% 23% 25% LOGICALIS GROUP Revenue Product Vendor Mix Others H1 FY 2006 H1 FY 2007 IBM remains most significant vendor partner

  30. LOGICALIS GROUP Gross Margin % Overall Gross margin % steady

  31. LOGICALIS GROUP EBITDA ($ millions) Continued growth in profitability in UK and US Note: EBITDA pre IFRS 2 charges and head office costs

  32. LOGICALIS GROUP Key Financial Measures Net cash reduction reflects acquisitive growth resulting in increased working capital requirements

  33. LOGICALIS GROUP Headcount by Region Increase predominantly due to acquisitions and growth in scale

  34. LOGICALIS GROUP Recent Important Wins

  35. LOGICALIS GROUP Future Outlook • Optimistic about second half trading conditions • Cisco Advanced Technologies still growing strongly • Continuing to focus on growing the services mix • Continue to evaluate acquisition opportunities • Scale should drive further operating efficiencies • Ian Cook – CEO, Logicalis European Operations – to succeed Jens Montanana in his capacity as Logicalis Group CEO from 1 March 2007 Jens to continue duties as Chairman of this division

  36. ANALYSYS MASON GROUP

  37. Technical, business and management consultingin telecomsand high-tech Contact centre,CRM andchange management consulting • Analysys Research • Telecoms research, publicationsand benchmarking • Analysys Consulting • Strategy consulting and economic modelling inthe telecoms sector ANALYSYS MASON GROUP Overview • Overview • The group offers a full spectrum of business advisory, management consultancy, research and implementation services • Trusted “independent” consultancy operating throughout the world with a direct presence in the UK, Ireland, France, Spain, Italy, USA and Singapore • Analysys Mason’s input has become an indispensable part of any major telecoms initiative • The group now employs approximately 330 professional consultants and support staff

  38. ANALYSYS MASON GROUP Highlights • Non-UK international revenues now contribute 48% of total • Modest revenue growth of 2% despite completion last year of large wireless network rollout • Improvements in gross and net profits • Debt free balance sheet with $9m of cash

  39. ANALYSYS MASON GROUP Financial Performance Summary

  40. ANALYSYS MASON GROUP Revenue Geographic Split – as % of Revenue Europe Europe 18% Rest of World 14% Rest of World USA 1% UK UK USA 67% H1 FY 2006 H1 FY 2007

  41. Analysys Research 9% Analysys Consulting 49% Analysys Research 8% Analysys Consulting 38% Mason 41% Mason 35% Catalyst 12% Catalyst 8% ANALYSYS MASON GROUP Revenue Segmental Split H1 FY 2006 H1 FY 2007

  42. H1 FY2007 H1 FY2006 ANALYSYS MASON GROUP Gross Margin % 60 55 44.7 50 41.6 45 40.1 36.5 40 34.4 31.4 35 30.6 28.7 30 25 17.3 20 10.7 15 10 5 0 Mason Analysys Consulting Analysys Research Catalyst Total %

  43. H1 FY2007 H1 FY2006 ANALYSYS MASON GROUP EBITDA – ($000’s) 3,500 3,263 3,227 3,000 2,465 2,500 2,000 1,694 1,500 1,239 1,110 1,000 370 500 162 157 0 -86 -500 Mason ACL ARL Catalyst Total $000

  44. ANALYSYS MASON GROUP Headcount by Division

  45. ANALYSYS MASON GROUP Recent Important Wins

  46. ANALYSYS MASON GROUP Future Outlook • Building critical mass in key geographies and content areas, e.g.: • US, Asia • Convergence, digital media research • Telecoms industry is still forecast to grow steadily, market drivers include: • Market liberalisation / privatisation • Fixed/mobile convergence and quadruple play • Development of IPTV and VOIP services • Telecoms consultancy is also forecast to maintain growth levels, key drivers being: • Geographic diversification • Operations and outsourcing • Business and strategic planning • NGN, Broadband and VOIP services

  47. DATATEC GROUP

  48. DATATEC GROUP Market Conditions • Outlook for the global IT industry remains favourable • US market continues to be robust • Europe inches forward • Rest of the world including emerging markets showing strong growth

  49. DATATEC GROUP Prospects • Expecting continued revenue growth and profit margin expansion • Improving contribution from Europe • Considering a number of strategic acquisitions • Plans to increase geographic footprint and extend services offerings

  50. QUESTIONS

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