UCS anticipates increased earnings

Johannesburg, 16 Nov 2006

JSE-listed UCS expects its earnings to be higher when it releases its full-year results to end-September.

The company told shareholders yesterday that its headline earnings per share are expected to be between 60% and 70% higher for the year, compared to its full-year results last year.

Earnings per share are expected to be between 140% and 150% higher. Last year, it reported headline earnings and earnings per share of 14.5c.

The company attributed the difference between the earnings per share and headline earnings per share to a once-off realisation of capital profits totalling R30 million, or 12.6c a share.

This was partially as a result of the dilution of UCS's investment in UCS Solutions Holdings from 100% to 74.9%, as a consequence of the TSS transaction, which became effective on 1 July 2006. Secondly, it was as a result of the profit on the disposal of the 34% interest in Universal Knowledge Software, which became effective on 1 October 2005.

Included in the headline earnings per share growth is UCS's portion of a deferred tax asset that has been raised of R4.3 million, or 1.8c a share, on previously unrecognised assessed losses available. Management believes it is probable these assessed losses will be used.

The company expects to publish its annual results before the end of November. Last year's figures showed revenue of R516.7 million and net profit of R34.8 million.