Datatec feels the pinchof recession

GLOBAL ICT group Datatec said yesterday that the global economic recession had severely affected its infrastructure, ICT solutions and services division Logicalis.

GLOBAL ICT group Datatec said yesterday that the global economic recession had severely affected its infrastructure, ICT solutions and services division Logicalis.

The company said in a statement released yesterday that challenging conditions in the US had negatively impacted on Logicalis, while trading in the UK had also softened.

"Both these markets have been affected by larger projects being delayed and the resultant impact on attached services," the statement said.

The company said, however, that trading and profitability in South America remain robust and in line with expectations, countering to some extent the more challenging environment in the US and the UK. Trading has also been tough on another Datatec division, Consulting Services, as a result of a deterioration in demand for strategic consulting services. - Kea' Modimoeng

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