Listed tech companies take strain

By Staff Writer for SecureData
Johannesburg, 26 Feb 2009

JSE-listed IT companies continue with a stream of bad news, with mixed results from SecureData, lower profits for Compu-Clearing and UCS closing the book on a possible deal.

SecureData released its review for its interim results for the six months ended 31 January 2009, showing its headline earnings per share (HEPS) and earnings per share (EPS) are expected to take a considerable knock.

HEPS and EPS are expected to be at 0.5cps and 1cps, compared with the same period last year when they were set at 8cps.

However, the company adds that the EPS figure includes the effects of amortisation of intangible assets and currency profit and losses on loans. It says “adjusted' earnings per share would reflect as 2.7cps and 3.2cps.

The company attributes the bad EPS results to poorer earnings performance, in the SecureData Security operations of SecureData Africa. Weaker margins in the company's UK-based operations are also partially responsible, having been hit hard by the global economic situation.

“During the period under review, significant steps were taken to improve the performance of SecureData Security, including the appointment of a new MD, a restructuring of senior management, and a comprehensive product portfolio review,” explains SecureData.

The company expects its results to be released on 17 March.

Ins and outs

Compu-Clearing is also looking at a bleak 8% decrease in expected profit before tax for its interim results for the six months ended 31 December 2008.

The company says lower import and export volumes are directly to blame for the decrease. It also expects its HEPS and EPS to be between 27% and 30% lower than the corresponding period last year.

Its audited interims are expected in the first week of March.

Like many other ICT companies, UCS may also be feeling the pinch. It announced a possible deal with an unnamed company, which would have had a material impact on its share.

However, the company pulled the deal yesterday afternoon, saying “shareholders no longer need to exercise caution when dealing in the company's shares”.