DTC
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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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