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DATATEC GROUP UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31AUGUST 2004 Jens Montanana CEO

DATATEC GROUP UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31AUGUST 2004 Jens Montanana CEO. DATATEC GROUP Trading Environment. General market conditions have remained stable, greater demand for IT products and services is evident in the US and Asia-Pac, Europe remains weak

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DATATEC GROUP UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31AUGUST 2004 Jens Montanana CEO

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  1. DATATEC GROUP UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31AUGUST 2004Jens MontananaCEO

  2. DATATEC GROUPTrading Environment • General market conditions have remained stable, greater demand for IT products and services is evident in the US and Asia-Pac, Europe remains weak • Latest results and guidance from the leading manufacturers such as Cisco, IBM and HP have been mixed, while current performance seems to be improving, the outlook remains uncertain • Revenues met or exceeded expectations in all major divisions • H1performance impacted by Westcon performance in Q2

  3. DATATEC GROUPPerformance Highlights • Continued strengthening of the balance sheet, cash position and profitability • Westcon’s revenues grew over 20% • Logicalis’ first operating profit in three years • Doubled size of consulting group with Analysys-Mason merger • Westcon’s IPO process temporarily suspended due to environment

  4. DATATEC GROUPRevenue $1.25 B $1.22 B $1.13 B 2H 04 1H 04 1H 05

  5. DATATEC GROUPRevenue By Regions North America 53.0% South Africa+ME 3.1% Asia 6.2% South America 1.2% Europe 36.5%

  6. DATATEC GROUPGross Margin $142.23 M $133.19 M $124.72 M 2H 04 1H 04 1H 05

  7. DATATEC GROUPEBITDA $12.32 M $11.47 M $10.25 M 2H 04 1H 04 1H 05

  8. DATATEC GROUPTotal Headline Profit / (Loss) Per Share (Restated) US Cents (0.40) (6.29) 0.10 1H 04 2H 04 1H 05

  9. DATATEC GROUPNet Cash Cash position remains strong $99.66 M $97.40 M $88.70 M 2H 04 1H 04 1H 05 Shows investment into working capital – revenue growth

  10. DATATEC GROUPSegmental Analysis Revenue EBITDA Gross Margin 15% 27% 12% *12% 6% 73% 2% 67% 86% Westcon AMG Logicalis * Excludes $1.68 M non trading EBT closure costs

  11. DATATEC GROUPProspects • Modest growth in corporate IT spend • Improved operating profits from all subsidiaries • Volatile tax rate

  12. WESTCON GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2004

  13. WESTCON GROUP Highlights • Consolidated revenue grows 21.4% over comparable period • Revenue increases across all divisions and geographic regions • Unexpected drop in gross margins to 7.6% from 8.9% (mainly as a result of Europe)

  14. WESTCON GROUP Highlights • FOREX losses declined • SG&A decreased to 6.6% from 6.8% • Non-recurring exceptional costs of $8 million

  15. WESTCON GROUP Actions Initiated • New Westcon Group CEO • Reorganisation and streamlining of senior management • Rationalisation of warehouse facilities in US and Europe • Steps taken with key vendors to enhance margins

  16. WESTCON GROUPHistorical Six Month Period Sales – US GAAP 1,065 $ 1,004 1,100 880 842 1,000 807 900 800 700 600 969 931 903 500 798 781 767 756 400 300 200 100 0 Mar-Aug Sep-Feb Mar-Aug Sep-Feb Mar-Aug Sep-Feb Mar-Aug 2002 2003 2004 2005 (Includes intercompany revenue relating to non-Westcon group Datatec subsidiaries)

  17. WESTCON GROUPConsolidated Sales by Vendor % Vendor 2H03 1H04 2H04 1H05 (% of total revenue) Cisco 51.7% 53.3% 57.0% 57.3% Nortel 11.6% 10.6% 10.0% 11.3% Avaya 11.5% 10.3% 8.8% 9.0% Security 10.6% 11.1% 10.2% 9.0% IP Devices 14.6% 14.7% 14.0% 13.4% Total 100.0% 100.0% 100.0% 100.0%

  18. WESTCON GROUPConsolidated Sales by Geography Region 2H03 1H04 2H04 1H05 (% of total revenue) Americas 58% 57% 54% 55% Europe 37% 37% 40% 38% Asia Pacific 5% 6% 6% 7% Total 100% 100% 100% 100%

  19. WESTCON GROUP Headcount by Region Region 2H03 1H04 2H04 1H05 Americas 499 401 432 439 Europe 711 604 509 486 Asia-Pac 118 128 124 129 Consolidated 1,328 1,132 1,065 1,054

  20. WESTCON GROUPConsolidated Results – IFRS – As Reported (US $, in millions) 2H03 1H04 2H04 1H05 • Sales $831 $860 $981 $1,044 • Gross Profit 73 76 86 79 • Gross Profit % 8.8% 8.9% 8.8% 7.6% • SG&A 59 58 68 69 • SG&A % 7.1% 6.8% 6.9% 6.6% • EBITDA 14 18 18 10 • EBITDA % 1.7% 2.1% 1.9% 1.0% • Dep & Amort 25 11 13 5 • D&A % 3.0% 1.3% 1.3% 0.5% • Interest Exp, Net 1 1 3 3 • Int Exp % 0.2% 0.1% 0.4% 0.3% • Pre-tax Income (Loss) (12) 6 2 2 • Pre-tax % (1.5)% 0.7% 0.2% 0.2% Note: Excludes Datatec Intercompany transactions

  21. WESTCON GROUPOperational Improvement Plan • Plan to improve gross margins and return Europe to profitability by applying the proven US model to Europe • The plan will be implemented over the next two quarters and could cost up to $4 million

  22. WESTCON GROUPConsolidated Balance Sheets – Working Capital – US GAAP (US $, in millions) 2H03 1H04 2H04 1H05 Accounts Receivable $236 $255 $311 $299 DSO (days) 51 54 60 53 Inventory $171 $175 $222 $204 Inventory Turns 9.0x 9.0x 7.8x 9.3x Accounts Payable $278 $303 $364 $285 DPO (days) 66 70 77 55 Current Ratio 1.5 1.5 1.5 1.5 Note: DSO, DPO, and inventory turns calculated using trailing twelve month amounts.

  23. WESTCON GROUPConsolidated Balance Sheets – Capitalization – US GAAP (US $, in millions) 2H03 1H04 2H04 1H05 Cash $141 $133 $114 $99 Working Capital Debt 72 63 84 97 Datatec Intercompany Loan 35 35 38 38 Net (Debt) / Cash 34 36 (8) (36) Equity 261 268 284 279 Debt to Capitalization 0.29 0.27 0.30 0.33 Liabilities to TNW 1.61 1.68 1.87 1.65

  24. WESTCON GROUP Net Cash Trend - FY 2000 to Current $100,000,000 ($30,701,555) $50,000,000 ($87,655,105) ($59,842,704) $0 -$50,000,000 ($139,544,122) -$100,000,000 -$150,000,000 ($224,336,852) -$200,000,000 -$250,000,000 -$300,000,000 Net Cash -$350,000,000 Feb- May- Aug- Nov- Feb- May- Aug- Nov- Feb- May- Aug- Nov- Feb- May- Aug- Nov- Feb- May- Aug- 00 00 00 00 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 Note: Amounts noted on graph represent the average net debt during FY 01, 02, 03, 04 and 05 to date.

  25. WESTCON GROUPFuture Outlook • Vendors increasingly committed to distribution • Voice and convergence markets growing; traditional voice and data switching and routing markets steady • Customer base stable • Group-wide program implemented to increase future operating income performance

  26. LOGICALIS GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2004

  27. LOGICALISHighlights • First operating profit recorded in over three years • Revenues up 12% sequentially (2% on comparative basis) • Margins steady • Operating expenses tightly controlled • US producing a stronger performance • Working capital effectively managed (DSO at 41 days) • Launched focused services division in UK • Acquisition of STI in the USA completed 1 September 2004 – $90M IBM partner

  28. LOGICALISFinancial Performance - Summary Trading in the first half of FY2005 has produced an operating profit Notes: 1) Includes Datatec level inter-company transactions which eliminate on Datatec consolidation 2) The exceptional profit arises on the sale of the Australian and New Zealand operations

  29. LOGICALISRevenue (continuing operations) UK 24.5% 27.9% 25.9% Germany 1.9% 1.7% 1.6% North America 70.2% 65.9% 67.8% South America 3.4% 4.5% 4.7% North America comprises two-thirds of continuing operations (% of revenue) 1H04 Regions 2H04 1H05 100.0% 100.0% 100.0%

  30. LOGICALISRevenue Streams (continuing operations) Revenue mix consistent 1H04 1H05 Prof Services 8% Prof Services 8% Maintenance 8% Maintenance 7% Managed Services 8% Managed Services 8% Product 77% Product 76% Note: Continuing operations exclude Australia and New Zealand

  31. LOGICALISGross Margin % (continuing operations) 35% 6 months to Aug 2003 Gross margin percentages held relatively steady - mix change impact in US 30% Feb 2004 Aug 2004 25% 20% 15% 10% 5% Total UK North America South America Germany Note: Continuing operations exclude Australia and New Zealand

  32. LOGICALISEBITDA ($000 - continuing operations) $’000 Aug 2003 2,500 Feb 2004 Aug 2004 2,000 1,500 1,000 500 0 (500) (1,000) UK Germany North America South America 6 months to A stronger performance from the US with the UK improving Note: Continuing operations exclude Australia and New Zealand

  33. LOGICALISKey Financial Measures Working capital remains effectively managed 1H04 2H04 1H05 ($000) Deferred Revenue 18,467 20,224 17,506 Inventory 16,250 16,766 11,622 ($000) Inventory Turns 17 14 17 (excluding spares stock) Accounts Receivable 46,902 48,097 37,138 ($000) DSO Days 47 43 41 Accounts Payable 42,568 37,667 ($000) 40,376 DPO Days 71 73 79 ($000) Net Cash 18,026 25,797 64,991 Note: 1 Aug 2003 and Feb 2004 figures include Australia and New Zealand These operations held net cash of $2M at Aug 2003 and $3M at Feb 2004 2 August 2004 net cash includes $41.7M after disposal of Australia/New Zealand operations and repayment of Datatec long term debt

  34. LOGICALIS Headcount by Region Region 2H03 1H04 2H04 1H05 Americas 490 469 448 452 Europe 280 226 211 207 Asia-Pac 330 344 324 - Consolidated 1,100 1,039 983 659

  35. LOGICALISKey Product Vendors (Product Revenue %) % HP HP and Cisco remain our dominant vendors – Cisco stronger in first half of FY2005 Cisco Others EMC IBM Sep-02 Feb-03 Aug-03 Feb-04 Aug-04 Note: Continuing operations

  36. LOGICALISRecent Important Wins • US – Exxon Mobile – large IBM win ($1.5M) • US – Swiss Re Insurance – new customer for IBM solutions ($1.5M) • US – LA County Sheriff – strong municipal reference story ($7.0M) • UK – Haringey Council – won against 3Com and another Cisco partner ($943K) • UK – Canada Life – VOIP single converged network structure ($808K) • UK/South America – Major cross border education project won in UK, delivered by South American operations ($909K) • South America – Multi-country contract with major oil company ($1.6M)

  37. LOGICALISProspects • Acquisition of STI in USA will yield benefits - improves critical mass - creates a better balanced business • UK services division gaining momentum • South American operations now stable after difficult economic times • Markets remain challenging and competitive • Seeking to make further acquisitions, but based on strict criteria • Cautiously optimistic for continuing performance improvement

  38. ANALYSYS MASON GROUP

  39. ANALYSYS MASON GROUPOverview Analysys Mason Group Consultancy Analysys Consulting Analysys Research Mason Communications Catalyst IT Partners Strategic Telecommunications Consultants Independent Telecommunications research Telecommunications Consultants & Implementation Contact Centre & Change Mgt Consultants • The Analysis Mason Group is an umbrella consultancy powerhouse • Created in August 2004 with a projected first year turnover of £35m • 300 staff based in 4 UK offices (London, Cambridge, Edinburgh and Manchester) and France, Ireland, Italy, Spain and the USA • Management own 14% (max of 24% in future)

  40. ANALYSYS MASON GROUPHighlights • Significant recovery since Mason restructured in Jan 04 • Telecoms operators now spending again on consultancy services • Rate pressures of recent years beginning to ease • Mason turnover + 12% on 1H04 • After reductions in infrastructure cost, Mason EBITDA + 53% on 1H04 • Charge to close Employee Benefit Trust (EBT) due to AMG merger • Annualised integration savings of approx £400k which will only impact next financial year

  41. ANALYSYS MASON GROUPFinancial Performance 1H05 Performance (6 mths Mason – 1mth Analysys) 1H05 1H05 1H05 1H05 Mason Analysys AMG Company AMG Consolidated £000 % £000 % £000 % £000 % Turnover 9,598 895 0 10,493 Cost of sale 6,848 572 0 7,420 Gross profit 2,750 28.7% 323 36.1% 0 0.0% 3,073 29.3% Operating costs 1,993 267 29 2,289 EBITDA 757 7.9% 56 6.3% -29 0.0% 784 7.5% Depreciation 66 8 0 74 PBIT 691 7.2% 48 5.4% -29 0.0% 710 6.8% Interest paid/(received) 10 -4 18 24 Profit before tax 681 7.1% 52 5.8% -47 0.0% 686 6.5% Note - The above results excludes the Mason EBT closure.

  42. ANALYSYS MASON GROUPJoint Bids • Development Agency - a regional planning instrument and toolkit • Development Agency - commercial and technical options for a national broadband network • Development Agency - commercial and technical due diligence • Ofcom - allocating available spectrum within VHF band III and L-Band • Ofcom - Cost Benefit assessment of Ultra Wide Band

  43. ANALYSYS MASON GROUPProspects • Steady recovery taking place in Telecoms sector • Increasing demand from operators across a range of issues including; implementation, support, business planning, consolidation and triple play (voice, data & TV) • Continuing global diversification • Identifying new cross-selling opportunities among the new Group’s existing clients • Should achieve further growth in revenues and margins in the second half

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