| Tue 20 Jan 2009, 9:42 | | DDT - Dimension Data Holdings Plc - Correction: Interim management statement |
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DDT
DIDDT
DDT - Dimension Data Holdings Plc - Correction: Interim management statement
Dimension Data Holdings Plc
Incorporated in Great Britain under the Companies Act 1985
Registration Number: 3704278
Share Code: DDT
Issuer code: DIDDT
ISIN number: GB0008435405
("Dimension Data" or "the Company")
Interim Management Statement
20 January 2009
Dimension Data Holdings plc ("Dimension Data" or the "Group", LSE and JSE: DDT),
the specialist global IT services and solution provider, today publishes an
interim management statement* (IMS), covering the trading period from 1 October
2008 to 20 January 2009 (the period).
Material Events and Transactions
On 11 November 2008 Dimension Data paid a total cash consideration of $276
million to minority shareholders of Datacraft Asia in exchange for the
outstanding 44.9% of Datacraft Asia shares that the Group did not already own.
There were no other material events or transactions over the period.
Financial Performance and Position
For the three months to 31 December 2008 (Q1 2009), Dimension Data performed
well given the challenging overall market conditions. Group revenues grew at
approximately 13% in constant currency on Q1 2008 (prior period), underpinned by
good growth in services. From a geographic perspective, in our Americas region
we experienced a weak performance in the US where revenues declined. Revenues
in all other regions increased in constant currency over the prior period.
Gross margins were stable and operating profit improved in constant currency
over the prior period. The Group heightened its focus on containing
discretionary costs and reduced its cost base in specific areas, most
significantly in the US.
The Group`s tax rate for the period was higher as a result of the reduced
contribution to Group profits from low tax paying regions, in particular the US.
Furthermore, the reported results will be adversely impacted by the strength of
the US dollar for the period against the Group`s main trading currencies.
A continued focus on working capital management led to an improvement in working
capital metrics relative to the prior period, and the Group reflected a healthy
cash balance at quarter end.
Outlook
This performance, combined with single digit constant currency growth in order
rates for the quarter, gives us confidence that Dimension Data will deliver
constant currency revenue growth in the first half of the 2009 financial year.
The macroeconomic environment remains challenging and has resulted in reduced
visibility of future trading. We expect demand conditions to remain constrained
in the short term and the Group is accordingly proactively managing its cost
base to ensure profitability is protected. Nevertheless, we believe Dimension
Data remains well positioned, due to our service and solution offerings, strong
supplier relationships and high quality client base, to strengthen our market
position in challenging times. An ungeared balance sheet, diversified
geographic exposure and recurring revenue base are additional assets which
position us well to weather a potentially tougher trading environment.
Results for the 6 months to March 2009
The Group is scheduled to release its results for the 6 months to 31 March 2009
on Wednesday 13
May 2009.
The financial information on which this statement is based has not been reviewed
or reported on by the Group`s auditors.
* The Disclosure and Transparency Rules (DTR) incorporated into the UK Listing
Authority`s rulebook in 2006 have extended the requirements for periodic
financial reporting, with the introduction of a new type of report,
the Interim Management Statement, to be issued twice a year, one in each six
month period.
Investor Relations enquiries:
Karen Cramer, +(44) 793 202 0296, +(44) 20 7651 7017
karen.cramer@uk.didata.com
Kevin Handelsman, +(27) 82 453 9945, +(27) 11 575 3632
kevin.handelsman@za.didata.com
Press enquiries:
Hilary King +(27) 82 414 9623, +(27) 11 575 6728
hilary.king@za.didata.com
Note to Editors
Dimension Data (LSE: DDT), a specialist IT services and solution provider, helps
clients plan, build, support and manage their IT infrastructures. Dimension Data
applies its expertise in networking, security, operating environments, storage
and contact centre technologies and its unique skills in consulting, integration
and managed services to create customised client solutions.
Date: 20/01/2009 09:42:01 Produced by the JSE SENS Department.
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