| Mon 1 Feb 2010, 9:00 | | DDT - Dimension Data Holdings Plc - Interim management statement |
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DDT
DIDDT
DDT - Dimension Data Holdings Plc - 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
01 February 2010
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 2009 to 31 January 2010 (the period).
Financial Performance and Position
The Group recorded a sound trading performance for the three months to 31
December 2009 (the quarter). Reported turnover reflected an approximately 6%
increase in relation to the three months to 31 December 2008 ("Q1 2009").
Key features of the quarter were a solid performance from the Systems
Integration (SI) business, in particular a turnaround in the USA, offset by a
poor trading result from Plessey.
On a constant currency basis, turnover for the quarter showed an approximately
9%year on year reduction, although sequentially in relation to the preceding
quarter turnover was flat. The turnover performance is consistent with
management`s expectations, taking into account that Q1 2009 was a very strong
comparative period having enjoyed the benefit of a strong order book from the
prior year. As a result, the effects of the global economic downturn were
only felt by the Group from Q2 2009. Comparisons are therefore expected to
become more favourable in the second quarter of this financial year.
As is the Group`s practice, for the remainder of the review reference to
growth rates will be on a constant currency basis.
By business, SI product turnover was down year on year, while services
continued to show growth. By region, Middle East and Africa, Australia and
Europe all recorded improved contributions, with a significant improvement in
operating profit in the Americas. Asia`s contribution reduced slightly in
line with investment in the expansion programme outlined at the year end. SI
recorded good sequential growth in order rates in relation to the preceding
quarter, and the business remains well positioned going into the second
quarter.
Internet Solutions grew turnover and improved operating profit in line with
expectations. Express Data reported turnover declines against a backdrop of a
very strong Q12009, and a stronger Australian Dollar which impacted unit
prices.
Plessey had a very weak quarter, reflecting reduced demand from its mobile
service provider clients in Africa. In response, the business reduced its
cost base, but expects order rates and trading to improve in the second
quarter.
There were no major changes to working capital and the Group`s cash position
remained strong throughout the period.
Outlook
The Group delivered a sound performance for the first quarter of 2010,
benefiting in particular from a resilient performance in the SI business.
Looking forward, we are seeing improved demand in some regions, although the
overall demand environment by region and business remains mixed. Order intake
in the first quarter reflected sequential growth over Q4 2009.
Management`s expectation of flat constant currency turnover in the first half
of the financial year ("the first half"), and single digit constant currency
turnover growth for the full year, is unchanged from when the Group reported
its year end results in mid November 2009. This, together with anticipated
stable gross margins, means that the Group remains well positioned to deliver
on its internal objectives for the half and for the full year.
Assuming no significant exchange rate movements from current levels, the
Group`s reported results for the first half will benefit from the strength,
relative to the comparative period, of its major trading currencies against
the US Dollar.
We remain optimistic about the positioning and prospects for Dimension Data
both in the short and medium term and continue to see good opportunities for
growth in many parts of the Group. We are committed to continue to invest 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 6 months to March 2010
The Group is scheduled to release its annual results for the 6 months to 31
March 2010 on 12 May 2010.
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
Sponsor:
J.P. Morgan Equities Limited
Date: 01/02/2010 09:00:04 Produced by the JSE SENS Department.
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