DTC
DTC
DTC - Datatec Limited - Interim Earnings Update
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
INTERIM EARNINGS UPDATE
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international
Information and Communications Technology (ICT) group, is currently finalising
its results for the six months ended 31 August 2009 ("the Period"), which are
expected to be published on SENS on 14 October 2009.
On 14 May 2009 the Group published a profit forecast for the full 2010 financial
year of revenues of between $3.7 billion and $4 billion, underlying* earnings
per share of approximately 29 US cents and earnings and headline earnings per
share of approximately 23 US cents. This forecast remains unchanged.
Datatec advises that revenues of approximately $1.8 billion were generated
during the Period, with gross margins remaining stable. The strong cash
generation experienced during the previous financial year has continued during
the Period.
Underlying earnings per share
Underlying* earnings per share for the Period are expected to be between 11 and
12 US cents per share, compared to 10.6 US cents per share for the six months
ended 28 February 2009 and 22.5 US cents per share for the six months ended 31
August 2008 (the "Comparative Period").
Put option liabilities
Under IFRS, the Group recognises liabilities against equity for put options held
by minority shareholders in subsidiaries and at each reporting date changes in
the fair value of such liabilities are booked in the income statement.
An increase in the fair value of put option liabilities has resulted in
unrealised additional expense of $6.4 million for the Period, compared to a gain
of $16.8 million in the six months ended 28 February 2009.
Underlying earnings per share are unaffected by this unrealised expense and
there are no cash implications associated with this accounting treatment.
As a result, the Board expects earnings per share and headline earnings per
share for the Period to be between 4 and 5 US cents per share, compared to 17.6
US cents per share in the Comparative Period. Excluding the increase in the fair
value of put option liabilities, earnings per share and headline earnings per
share would have been between 8 and 9 US cents per share.
Financial information
The financial information on which this announcement is based has not been
reviewed and reported on by Datatec`s auditors.
*Underlying earnings per share excludes goodwill and intangibles impairment,
amortisation of intangible fixed assets, profit or loss on sale of assets and
businesses, fair value movements on put / call options and unrealised foreign
exchange movements
Enquiries:
Datatec Limited (www.datatec.co.za)
Ivan Dittrich, Chief Financial Officer +27 11 233 1221
Wilna de Villiers, Group Marketing Manager +27 11 233 1013
Jefferies International Limited
Chris Snoxall / Rupert Mitchell +44 (0) 20 7029 8000
College Hill
Adrian Duffield/Jon Davies (UK) +44 (0) 20 7457 2020
Fred Cornet / Hayley Crane (SA) +27 (0) 11 447 3030
Note to Editors
Datatec Limited is an international Information & Communications Technology
(ICT) group focused on the supply of advanced ICT and the delivery of
professional services into the higher growth segments of the global market. The
Group`s main lines of business comprise the global distribution of advanced
networking and communications convergence products (Westcon Group), IT
infrastructure solutions and network integration (Logicalis) and strategic
telecommunications consulting (Analysys Mason). Datatec is registered in South
Africa and its shares are listed in Johannesburg and London.
Sandown
30 September 2009
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 30/09/2009 08:00:06 Produced by the JSE SENS Department.
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