DTC - Datatec Limited - Final Year End earnings update
9 May 2011 9:00
DTC
DTC                                                                             
DTC - Datatec Limited - Final Year End earnings update                          
Datatec Limited                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
FINAL YEAR END EARNINGS UPDATE                                                  
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international        
Information and Communications Technology (ICT) group, is today publishing a    
final year end earnings update for the financial year ended 28 February 2011,   
reflecting the fair value movements on put/call options for minority            
shareholders in subsidiaries.                                                   
Underlying earnings per share*, which are unaffected by any fair value          
movements on put/call options for minority shareholders, are expected to be     
higher at approximately 38 US cents per share, compared to previous guidance    
of approximately 37 US cents per share (2010: 30,3 US cents per share).         
On 10 March 2011 Datatec announced that earnings per share and headline         
earnings per share for the year ended 28 February 2011 were expected to be      
approximately 32 US cents and that profit after tax was expected to be          
approximately $61 million. It was also announced that these estimates did not   
factor in any fair value movements on put / call options for minority           
shareholders in subsidiaries.                                                   
An increase in the fair value of put option liabilities has resulted in         
unrealised fair value losses of $ 14.7 million (2010: $12.0 million). This is   
as a consequence of the increased equity valuation of the underlying            
subsidiaries.                                                                   
As a result the Board now expects earnings per share and headline earnings per  
share to be approximately 23 US cents per share (2010: 17 US cents per share)   
and profit after tax to be approximately $46 million (2010: $32 million).       
There are no cash implications for this technical change in earnings guidance.  
Had the fair value loss not been incurred, there would have been no change to   
the previous guidance for earnings per share, headline earnings per share and   
profit after tax.                                                               
The Group expects to release its preliminary results for the year ended 28      
February 2011 on Wednesday 11 May 2011.                                         
The financial information on which this statement is based has not been         
reviewed and reported on by Datatec`s auditors.                                 
*Underlying earnings per share exclude 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 11 233 1221                       
Wilna de Villiers, Group Marketing        +27 11 233 1013                       
Manager                                                                         
                                                                                
Jefferies International Limited                                                 
Chris Snoxall                              +44 (0) 20 7029 8000                 
                                                                                
College Hill                                                                    
Adrian Duffield/Jon Davies (UK)           + 44 (0) 20 7457 2020                 
Fred Cornet                               +27 (0) 11 447 3030                   
Sandown                                                                         
9 May 2011                                                                      
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 09/05/2011 09:00:01 Produced by the JSE SENS Department.                  
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