Westcon International performance

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	US$ million	FY22	FY21	% movement
	Revenue	2 890.4	2 585.7	12
Revenue increased due to strong demand fornetworked infrastructure, remote access solutions with enhanced cyber security for flexible working and virtual office environments and unified collaboration. In constant currency***, revenue improved by 10.0%. Westcon International's product backlog also increased significantly because of the semiconductor shortage and supply chain constraints. Backlog at the end of FY22 was approximately US$824 million compared with US$261 million for FY21.
	Gross profit	319.0	291.0	10
Gross margins decreased with lower margins in Europe and MEA offset by a higher margin in Asia-Pacific. Gross profit increased by 9.6%, supported by higher results in Europe and Asia‑Pacific.
	Gross margin (%)	11.0	11.3
	Operating costs	(250.9)	(246.2)	2
Operating costs increased as the impact of a weaker US dollar and an increase in share-based payment charges were offset by a favourable swing in foreign exchange expense and the absence of restructuring charges in FY22 (FY21: US$7.7 million). Central costs of US$29.3 million were incurred in FY22 (FY21: US$29.4 million).
	EBITDA	68.1	44.8	52
EBITDA increased by 52.0% with favourable results in Europe (56% growth) and Asia‑Pacific offset by a lower result in MEA.
	EBITDA margin (%)	2.4	1.7
	Adjusted EBITDA	78.6	55.2	42
	Adjusted EBITDA margin (%)	2.7	2.1
	Operating profit	43.6	22.2	96
	Operating profit margin (%)	1.5	0.9

NET DEBT

US$ million	FY22	FY21
Cash resources	204.5	243.1
Bank overdrafts	(7.5)	(4.9)
Short-term interest-bearing liabilities and short-term leases	(243.5)	(225.4)
Long-term interest-bearing liabilities and long-term leases	(38.5)	(31.8)
Net debt	(85.0)	(19.0)

Net debt was US$85.0 million (FY21: US$19.0 million) with the increase largely attributable to Datatec inter-company debt repayments.

Westcon International has successfully continued to roll out and increase adoption of internal tools, new applications, and extended partner and vendor integrations that have all contributed to improved internal and external stakeholder experiences. The division has, once again, been awarded numerous vendor awards and accolades in recognition of the outstanding execution in all markets in which it operates. The division’s ONE Westcon agenda, related employee wellness initiatives and training programmes, all continue to enrich the lives of every Westcon International team member motivating them to make outstanding contributions.

Net working capital days decreased to 15 days (FY21: 20 days) primarily due to a seven-day improvement in days sales outstanding ("DSO").

Datatec Financial Services provides financing/leasing solutions for ICT customers. The business has been moved to Westcon International during FY22 to leverage the capabilities and scale of both businesses. The business recorded revenue of US$0.6 million in FY22 (FY21: US$1.1 million) and an EBITDA loss of US$0.9 million (FY21: US$1.1 million loss). The FY22 results are included in the Westcon International segment with the FY21 results included in the "Corporate and Management Consulting" segment.

***	The pro forma constant currency information, which is the responsibility of the Datatec directors, presents the Group’s revenue for the current reporting period had it been translated at the average foreign currency exchange rates of the prior reporting period.