| Wed 19 Aug 2009, 9:56 | | DDT - Dimension Data - Interim Management Statement 19 August 2009 |
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DDT
DIDDT
DDT - Dimension Data - Interim Management Statement 19 August 2009
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 19 August 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 April 2009 to 18 August 2009 (the period).
Financial Performance and Position
For the three months to 30 June 2009 (the quarter), Dimension Data extended the
strong financial performance reported in its interim results for the six month
period to 31 March 2009, with good services growth leading to improved gross and
operating margins.
Overall reported revenues declined for the quarter relative to Q3 2008 (prior
period) by approximately 12%. Adjusting for the impact of exchange rate
movements, constant currency revenues declined on the prior period by
approximately 4%, with Services up by approximately 12% (supported in particular
by Managed Services) and Product declining by approximately 14%. For the
remainder of this statement, analysis of performance will be on a constant
currency basis.
Gross margins for the quarter improved over the prior period, due mainly to the
change in mix in favour of services. This, together with the Group`s continued
focus on managing its fixed cost base, resulted in improved operating margin and
operating profit relative to the prior period.
From a geographic perspective, Europe, Australia and Middle East and Africa
recorded revenue growth and operating profit expansion. In the Americas,
revenues and profits were lower than the prior period, although recent
improvements in the monthly order intake in that region have been encouraging.
In Asia, profitability improved on the back of services growth and cost
management, despite product revenue declines. While Middle East and Africa
performed well in aggregate, Plessey`s revenues declined as mobile operators on
the continent reduced infrastructure spend.
The Group`s order intake for the quarter reflected a year on year decrease at
the revenue level but an increase at the gross profit level. On a sequential
basis, order intake for the quarter at the revenue and gross profit levels
improved on the previous three months (Q2 2009).
Working capital was well controlled throughout the period, and the Group
maintains a robust balance sheet and a strong net cash balance.
Outlook
The continued solid performance of the Group in the third quarter gives us
confidence that, given prevailing economic conditions, Dimension Data will
deliver a good financial performance for the second half of the year. The
performance of our services business should ensure that gross margins are
maintained at similar levels to those reported at the interim stage and this,
combined with an emphasis on cost management, means that the Group should
deliver operating profit expansion in constant currency for the 2009 financial
year.
In the medium term, we continue to see opportunities throughout our Solutions
and Services portfolio, and remain optimistic about the prospects for the Group.
We remain committed to investing in our execution capabilities and to enhancing
our competitive position to capture opportunities in the markets within which
the Group operates.
Material Events and Transactions
There were no material events during the period.
Results for the 12 months to September 2009
The Group is scheduled to release its annual results for the 12 months to 30
September 2009 on 18 November 2009.
The financial information on which this statement is based has not been reviewed
or reported on by the Group`s auditors.
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
About Dimension Data
Dimension Data plc (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, converged communications,
security, data centre and storage, Microsoft and contact centre technologies,
and its unique skills in consulting, integration and managed services to create
customised client solutions.
www.dimensiondata.com
Date: 19/08/2009 09:56:16 Produced by the JSE SENS Department.
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