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7. Summarised segmental analysis for the year ended 28 February 2023

For management's internal purposes, the Group is currently organised into four operating divisions which are the basis on which the Group reports its primary segmental information. Principal activities are as follows:

  • Westcon International: Value-added technology distributor of industry-leading solutions. Provides class-leading cyber security, network infrastructure, unified collaboration products, data centre solutions, channel support services and financing/leasing solutions for ICT customers;
  • Logicalis International and Logicalis Latin America: International solutions providers of digital services; and
  • Corporate and Management Consulting: Management Consulting provides strategic, trusted advisory, modelling and market intelligence services to the TMT industries. Analysys Mason was disposed of during the year and its results are disclosed as discontinued operations. Corporate includes Group head office companies, including the ultimate Logicalis holding company, Logicalis Group Limited and its associated costs, 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.

The segmental report has been updated in the current and prior year to reflect significant expenses identified in EBITDA. The regional analysis of EBITDA is no longer presented. Following the change to management reporting segments, EBITDA is now only reviewed per operating division by the chief operating decision maker.

During FY23 and FY22, there were no customers that individually accounted for over 10% of the Group's revenue. There is one customer in Logicalis Latin America which accounts for over 10% of Logicalis Latin America's revenue (US$180.7 million).

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 period ended 28 February 2023 amounted to US$71.1 million (FY22: US$53.4 million). During the year, the Group made sales totalling US$74.9 million (FY22: US$49.0 million) and received management fees of US$0.3 million (FY22: US$0.3 million) from its associate Esource Resources, LLC, which was disposed of during the current year. No amounts due to or from this entity are disclosed as it no longer meets the definition of a related party at 28 February 2023.

Westcon International

Logicalis International

 

Logicalis Latin America

US$'000     Audited
Year ended
28 February
2023 
Audited
Year ended
28 February
2022 
  Audited
Year ended
28 February
2023 
Audited
Re-presented#
Year ended
28 February
2022 
  Audited
Year ended
28 February
2023 
  Audited
Re-presented#
Year ended
28 February
2022 
Revenue    3 420 569  2 890 439    1 231 517  1 133 265    491 039    522 694 
Revenue from product sales    3 338 944  2 810 644    755 236  667 917    275 417    340 977 
Revenue from sales of hardware    2 018 852  1 679 219    569 783  479 743    186 814    245 063 
Revenue from sales of software*    1 318 914  1 115 401    186 301  188 266    88 970    95 914 
Revenue from vendor resold services and product maintenance sales    70 417  68 554    –  –    –    – 
Inter-segmental revenue    (69 239) (52 530)   (848) (92)   (367)   – 
Revenue from services    69 986  69 527     194 292  179 861    61 506    50 245 
Revenue from professional services    70 555  70 258    194 292  179 861    61 506    50 245 
Inter-segmental revenue    (569) (731)   –  –    –    – 
Revenue from annuity services    11 639  10 268     281 989  285 487    154 116    131 472 
Revenue from cloud services    –  –    108 954  46 593    1 400    995 
Revenue from software services*    11 760  10 310    –  –    –    – 
Revenue from other annuity services    –  –    173 035  238 894    152 716    130 477 
Inter-segmental revenue    (121) (42)   – –   –    – 
Significant expenses included in EBITDA:             
Staff costs    (199 892) (199 367)   (199 625) (192 418)   (55 170)   (51 319)
Share-based payments    (36 284) (10 523)   (463) (899)   (504)   645 
Restructuring costs    –  –    (12 504) –    (2 189)   – 
EBITDA    48 459  68 071    50 466  64 048    21 156    28 486 
Reconciliation of operating profit/(loss) to profit/(loss) for the year             
Operating profit/(loss)   21 741  43 562    6 595  27 862    13 802    21 016 
Interest income    1 117  546    1 329  441    2 454    635 
Finance costs    (20 341) (11 825)   (13 197) (7 861)   (12 935)   (13 525)
Share of equity-accounted investment earnings/(losses)   –  –    409  452    (645)   (1 613)
Acquisition-related fair value adjustments    –  –    38  567    –    – 
Other income/(expenses)   21  (27)   –  –    –    – 
Loss on disposal of investment    –  –    (1 392) –    –    – 
Profit/(loss) before taxation    2 538  32 256    (6 218) 21 461    2 676    6 513 
Taxation    (6 271) (1 413)   (1 264) (6 659)   (1 391)   (1 748)
(Loss)/profit for the year from continuing operations    (3 733) 30 843    (7 482) 14 802    1 285    4 765 
Profit for the year from discontinued operations    –  –    –  –    –    – 
(Loss)/profit for the year     (3 733) 30 843     (7 482) 14 802    1 285    4 765 
Assets and liabilities             
Total assets    1 935 153  1 443 308    1 087 569  976 807    507 688    390 930 
Total liabilities    1 845 555  1 325 785    865 704  745 551    354 665    241 162 

 

Corporate and
Management Consulting

Datatec Group Total

US$'000 
   
Audited
Year ended
28 February
2023 
Audited
Re-presented^#
Year ended
28 February
2022 

   
Audited
Year ended
28 February
2023 
Audited
Re-presented^
Year ended
28 February
2022 
Revenue     –  –     5 143 125  4 546 398 
Revenue from product sales     –  –     4 369 597  3 819 538 
Revenue from sales of hardware     (47 144) (40 970)    2 728 305  2 363 055 
Revenue from sales of software*     (23 175) (11 393)    1 571 010  1 388 188 
Revenue from vendor resold services and product maintenance sales     (135) (259)    70 282  68 295 
Inter-segmental revenue     70 454  52 622     –  – 
Revenue from services     –  –     325 784  299 633 
Revenue from professional services     (569) (731)    325 784  299 633 
Inter-segmental revenue     569  731     –  – 
Revenue from annuity services     –  –     447 744  427 227 
Revenue from cloud services     –  –     110 354  47 588 
Revenue from software services*     (121) (42)    11 639  10 268 
Revenue from other annuity services     –  –     325 751  369 371 
Inter-segmental revenue     121  42     –  – 
Significant expenses included in EBITDA: 
Staff costs     (2 690) (2 595)    (457 377) (445 699)
Share-based payments     (15 390) (4 688)    (52 641) (15 465)
Restructuring costs     (464) –     (15 157) – 
EBITDA     (21 835) (17 148)    98 246  143 457 
Reconciliation of operating profit/(loss) to profit/(loss) for the year 
Operating profit/(loss)    (23 646) (17 465)    18 492  74 975 
Interest income     3 584  642     8 484  2 264 
Finance costs     (101) (104)    (46 574) (33 315)
Share of equity-accounted investment earnings/(losses)   1 118  734    882  (427)
Acquisition-related fair value adjustments     –  –     38  567 
Other income/(expenses)    –  –     21  (27)
Loss on disposal of investment     –  –     (1 392) – 
Profit/(loss) before taxation     (19 045) (16 193)    (20 049) 44 037 
Taxation     (4 449) 350     (13 375) (9 470)
(Loss)/profit for the year from continuing operations     (23 494) (15 843)    (33 424) 34 567 
Profit for the year from discontinued operations     116 967  5 766     116 967  5 766 
(Loss)/profit for the year     93 473  (10 077)    83 543  40 333 
Assets and liabilities 
Total assets     95 855  201 188     3 626 265  3 012 233 
Total liabilities    28 001  68 789    3 093 925  2 381 287 
* Includes software as a service revenues.
^ The prior year has been re-presented to show comparative results from discontinued operations in accordance with IFRS 5.
# The Logicalis segment previously reported in the prior period is now being reported as two management segments, Logicalis Latin America and Logicalis International (representing the Logicalis business outside of Latin America) to understand the factors affecting the underlying performance of the respective businesses and to align with the Group's strategic objectives. The ultimate Logicalis holding company, Logicalis Group Limited, and its associated costs, is now included in the "Corporate and Management Consulting" segment. Comparative results have been re-presented.