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Westcon AME and Online Distribution
Westcon AME and OnLine Distribution are value-added networking equipment distributors, in SA and the Middle East, respectively, whose operations mirror those of the Westcon group.
In the year ended 28 February 2006 Westcon AME’s revenue amounted to $48,2 million (2005: $43,1 million). EBITDA amounted to $1,1 million (2005: $1,3 million). The second half of the year saw a significant improvement over the first half performance (operating losses of $113 000 in first half) and the outlook for the next twelve months is positive with a strong pipeline and an expectation to grow revenues by over 25%.
OnLine Distribution’s revenue amounted to $34,3 million (2005: $26,8 million). EBITDA amounted to $1,7 million (2005: $1,5 million) which met expectations. This result was due, in main, to new product introduction (i.e. security sector) and better than expected results from its Auto ID and Security business units.
Going forward the Middle East market is set to grow as oil revenues continue to increase and outpace budgetary expectations. Funds flow will increase and there has been, and is, a particular emphasis on governments investing in IT, particularly in the education, finance and health sectors. OnLine's organic strategies will allow it to capitalise on this top line growth.
RANGEGATE
RangeGate represents the Group's wireless mobile technology systems integration business, and provides mobile supply chain solutions to sectors such as retail, industrial, manufacturing, transport and logistics.
RangeGate’s revenue declined to $4,4 million (2005: $6,9 million) and incurred an EBITDA loss of $0,6 million (2005: profit of $18 000).
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