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 Limited, ("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 2010 ("the Period"), which will
be published on 13 October 2010.
As a JSE Listed company, Datatec is required to publish trading statements if
the financial results for a given period are more than 20% higher than the
results for the previous corresponding period. As described in more detail
below, underlying* earnings per share, earnings per share and headline earnings
per share for the Period are expected to be more than 20% better than the
previous corresponding period of six months ended 31 August 2009 (the
"Comparative Period").
Group revenues for the Period are expected to be approximately $2.1 billion
compared to approximately $1.8 billion in the Comparative Period, with overall
gross margins remaining stable.
Underlying earnings per share
Underlying* earnings per share for the Period are expected to be between 15 and
16 US cents per share, compared to 11.5 US cents per share for the Comparative
Period.
Earnings and headline earnings per share
Under IFRS, the Group recognises liabilities against equity for the potential
obligation to buy out minority shareholders under the terms of put options held
by them in subsidiaries. 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 these minority interest buy-out liabilities has
resulted in an unrealised additional charge of $6.8 million for the Period,
compared to a charge of $6.4 million in the Comparative Period.
Underlying earnings per share are unaffected by this unrealised charge 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 to be between 8 and 9 US cents per share, compared to 4.9 US cents 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 12 and 13 US cents per share.
Financial information
The financial information on which this statement is based has not been reviewed
and reported on by Datatec`s auditors.
*Underlying earnings per share excludes goodwill and intangibles impairment,
amortisation of acquired intangible assets, profit or loss on sale of assets and
businesses, fair value movements on acquisition related financial instruments
and unrealised foreign exchange movements
Enquiries:
Datatec Limited (www.datatec.co.za)
Ivan Dittrich - Chief Financial Officer +27 (0) 11 233 1221
Wilna de Villiers - Group Marketing Manager +27 (0) 11 233 1013
Jefferies International Limited
Chris Snoxall +44 (0) 20 7029 8000
College Hill
Adrian Duffield/Rozi Morris (UK) + 44 (0) 20 7457 2020
Frederic Cornet (SA) +27 (0) 11 447 3030
30 September 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 30/09/2010 08:00:03 Produced by the JSE SENS Department.
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