JSE-listed software firm UCS Group is expecting earnings per share to plunge by between 95% and 105% in its coming interim results for the six months ended 21 March 2009.
In the company's trading statement, published yesterday afternoon, UCS explains it also expects headline earnings per share to be between 55% and 65% down from the corresponding period last year.
“The difference between the earnings per share and headline earnings per share relates to the impairment of goodwill and intangible assets associated with certain business units, totalling some R14.9 million (5.1c per share) for the period under review,” adds the statement.
Despite the gloomy forecast, the company expects a strong revenue growth figure of 27.6%, to R725 million. UCS says 11% of the revenue growth has been organic. It attributes the rest to the purchase of Computer Software Consultants, which it acquired in June last year.
Normalised EBITDA grew by 6.5% over the same period in 2008. The company says the EBITDA figure excludes foreign exchange translation and the R8 million income realised during the Aquitec acquisition.
UCS also released a cautionary in the same announcement, but declined to elaborate on whether it is buying or selling. The company has been on a buying spree over the last two years, acquiring Aquitec for R41 million and Computer Software Consultants last year for a capped R98.1 million.
At the company's final results presentation for the year ended September 2008, it detailed plans to up its black empowerment rankings from 13.62% to at least 25% over the coming year. The need for a BEE partnership has led to speculation that it could be buying. However, its earnings forecast could preclude a purchase agreement.
The company has listed an on-again, off-again cautionary since late January. However, it has declined to comment on any of the updates.
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