Summarised segmental analysis

for the year ended 29 February 2020

For management’s internal purposes the Group is currently organised into three operating divisions which are the basis on which the Group reports its primary segmental information.

Principal activities are as follows:

  • Westcon International – distribution of security, collaboration, networking and data centre products;
  • Logicalis – ICT infrastructure solutions and services; and
  • Corporate, Management Consulting and Financial Services: includes strategic, trusted advisory, modelling and market intelligence services, financing/leasing business, Group head office companies and Group consolidation adjustments.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors that make strategic decisions.

    Westcon International Logicalis
US$'000   Audited
Year ended
February
2020		   Audited
Year ended
February
2019		   Audited
Year ended
February
2020		   Audited
Year ended
February
2019		    
REVENUE     2 544 623     2 544 774     1 700 445     1 741 064       
Revenue from product sales     2 402 372     2 479 407     1 004 809     1 086 789       
Revenue from sales of hardware/direct product sales     1 655 212     1 772 579     896 877     991 657       
Revenue from sales of software/fulfilment product sales     725 421     688 036     108 013     95 483       
Revenue from vendor resold services and product maintenance sales     60 780     57 819     807     1 000       
Inter-segmental revenue     (39 041)    (39 027)    (888)    (1 351)      
Revenue from services     67 898     65 367     283 400     269 074       
Revenue from professional services     67 898     64 428     283 400     269 074       
Revenue from other services     –     939     –     –       
Annuity revenue    74 353     –     412 236     385 201       
Revenue from cloud services     74 353     –     49 384     44 049       
Revenue from other annuity services     –     –     362 852     341 152       
EBITDA     40 038     5 565     123 854     93 366       
Reconciliation of operating profit/(loss) to profit/(loss)after taxation                              
Operating profit/(loss)    18 972     (4 226)    72 287     65 949       
Interest income     1 084     1 491     11 538     1 693       
Finance costs     (14 733)    (13 683)    (25 608)    (18 455)      
Share of equity-accounted investment (losses)/earnings     (398)    (2 143)    (181)    468       
Acquisition-related fair value adjustments     –     –     696     (35)      
Other income/(expenses)    918     (97)    –     –       
Gain/(loss) on disposal of investment     415     (255)    –     –       
Profit/(loss) before taxation     6 258     (18 913)    58 732     49 620       
Taxation     (5 962)    (3 271)    (21 949)    (12 317)      
Profit/(loss) for the year from continuing operations     296     (22 184)    36 783     37 303       
Profit for the year from discontinued operations     –     –     –     –       
Profit/(loss) for the year     296     (22 184)    36 783     37 303       
Total assets     1 155 583     1 226 057     1 303 083     1 318 226       
Total liabilities     (985 859)    (1 046 305)    (926 877)    (943 441)      

  Corporate, Management
Consulting and Financial Services		 Datatec Group Total    
US$'000     Audited
Year ended
February
2020		   Audited
Year ended
February
2019		   Audited
Year ended
February
2020		   Audited
Year ended
February
2019		    
REVENUE      59 777     46 543     4 304 845     4 332 381       
Revenue from product sales      1 041     –     3 408 222     3 566 196       
Revenue from sales of hardware/direct product sales      (29 067)    (30 231)    2 523 022     2 734 005       
Revenue from sales of software/fulfilment product sales      (9 821)    (10 147)    823 613     773 372       
Revenue from vendor resold services and product maintenance sales      –     –     61 587     58 819       
Inter-segmental revenue      39 929     40 378     –     –       
Revenue from services      51 865     46 543     403 163     380 984       
Revenue from professional services      51 865     46 543     403 163     380 045       
Revenue from other services      –     –     –     939       
Annuity revenue     6 871     –     493 460     385 201       
Revenue from cloud services      –     –     123 737     44 049       
Revenue from other annuity services      6 871     –     369 723     341 152       
EBITDA      (5 235)    (12 170)    158 657     86 761       
Reconciliation of operating profit/(loss) to profit/(loss)after taxation                                
Operating profit/(loss)     (8 722)    (13 300)    82 537     48 423       
Interest income      2 289     6 384     14 911     9 568       
Finance costs      (444)    (7)    (40 785)    (32 145)      
Share of equity-accounted investment (losses)/earnings      375     272     (204)    (1 403)      
Acquisition-related fair value adjustments      –     –     696     (35)      
Other income/(expenses)     –     159     918     62       
Gain/(loss) on disposal of investment      –     –     415     (255)      
Profit/(loss) before taxation      (6 502)    (6 492)    58 488     24 215       
Taxation      (3 898)    (5 371)    (31 809)    (20 959)      
Profit/(loss) for the year from continuing operations      (10 400)    (11 863)    26 679     3 256       
Profit for the year from discontinued operations      1 332     11 694     1 332     11 694       
Profit/(loss) for the year      (9 068)    (169)    28 011     14 950       
Total assets      137 860     178 024     2 596 526     2 722 307       
Total liabilities      (40 697)    (20 331)    (1 953 433)    (2 010 077)      

Sales and purchases between Group companies are concluded on normal commercial terms in the ordinary course of business. The inter-group sales of goods and provision of services for the year ended 29 February 2020 amounted to US$40.0 million (FY19: US$40.4 million). US$107.5 million (FY19: US$113.1 million) of inventory was purchased from SYNNEX Corporation Limited. US$2.4 million (FY19: US$2.6 million) was owed to SYNNEX Corporation and US$0.2 million (FY19: US$0.3 million) was due from SYNNEX Corporation. During the year, the Group made sales totalling US$51.1 million (FY19: US$48.4 million) and received management fees of US$0.3 million (FY19: US$0.5 million) from Esource Resources, LLC. As at 29 February 2020, US$2.2 million (FY19: US$4.2 million) was due from Esource Resources, LLC. US$0.1 million (FY19: US$0.2 million) was due to Esource Resources, LLC.



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