18 May 2005
Logicalis Group reports increased revenues and profit for year ended 28 February 2005
Logicalis Group reported revenue of $352 million for the 12 months ended 28th February 2005 (up 11% for continuing operations). The revenue reported included $8 million of revenue from one month of ownership of the disposed operations in Australia and New Zealand, $53 million from the acquisition of STI on 1st September 2004 and $4 million from the Vados division sold in April 2005. North America generated 73% of revenue from continuing operations with Europe contributing 21%.
The EBITDA profit from continuing operations for the year was $9.7 million compared to an EBITDA profit of $2.4 million last year. There was an improvement in the performance of all geographies and the US operation in particular delivered a significant improvement.
Logicalis has been progressively enhancing its business model by improving its strategic focus and operating efficiency. This has been achieved through aligning the cost base with lower revenues following the downturn in the sector, streamlining the businesses to improve efficiency and seeking ways to increase revenues both organically and through acquisition.
The sale of the Logicalis operations in Australia and New Zealand in March 2004 for $66 million (generating an exceptional profit of $44.7 million) provided the funds to enable Logicalis to strengthen its core operations through targeted acquisitions. Logicalis has completed three acquisitions in the past 12 months:
- On 1st September 2004, Logicalis acquired Solutions Technology, Inc (STI), a leading IBM Infrastructure Solutions partner delivering solutions to over 500 customers principally in the Midwestern region of the US.
- On 1st March 2005, Logicalis acquired Notability Solutions Limited ("Notability"), one of IBM's top business partners in the UK. With annual revenues in excess of $40 million, Notability is a Premier IBM hardware and software partner serving a broad range of customers across a number of industries.
- On 17th March 2005, Logicalis acquired Eisco Technology Inc., a US IBM solution provider focusing on high-end IBM zSeries mainframe solutions. The acquisition of Eisco completes our IBM Solutions portfolio in the US and allows us to service our customers' entire IBM requirements.
These acquisition transactions position Logicalis Group as a strategic IBM Partner in both the UK and US markets. The acquisitions have also increased our scale with Logicalis Group's annualised revenues approaching $500 million.
About Logicalis
Logicalis is an international provider of high-performance IT integration solutions. The Logicalis Group employs 800 people worldwide, including highly-trained service specialists who specify, design, deploy and manage IT infrastructure to meet the needs of over 5,000 corporate and public sector customers. Logicalis maintains strong partnerships with technology leaders such as Cisco, HP and IBM.
The Logicalis Group is a division of Datatec Limited, a $2.5 billion business listed on the Johannesburg Stock Exchange. With its international headquarters in the UK, Logicalis' global revenue is approaching $500 million from operations in the US, UK, Germany, and South America. For more information, visit www.logicalis.com.