JSE-listed prepaid voucher distributor Blue Label says a once-off gain, less shares in issue and its trading performance all contributed to higher headline earnings per share for the year to May.
Analysts view headline earnings per share as a key indicator of a company's performance as the figure strips out once-off and unusual items.
Blue Label, which will publish year-end results on 21 August, says headline earnings per share will be between 35% and 45% higher than the 46.2c reported in the previous year.
Last month, it said headline earnings per share for the year were expected to be higher than last year's 46.20c by more than 20%. Basic and core earnings per share will not be more than 20% higher than the last year, said Blue Label.
Basic and core earnings per share are expected to be higher than the year to May 2011 by between 5% and 10%.
Blue Label says the headline earnings per share gain is due to a “hybrid” of a once-off gain of R74.9 million, its share buy back, which trimmed the number of shares in issue, and its trading performance.
At half-year, the company reported that a once-off confidential “other” income receipt of R79.4 million boosted its profitability for the six months to 30 November. A year ago, revenue gained 13%, to R18 billion, while net profit after tax gained 18%, to R431 million.
Headline earnings per share dropped 4%, to 46.20c, while basic earnings per share moved to 57.04c, from 48.17c.
Shares in Blue Label closed 1.24% - or 7c - higher at R5.73 yesterday.
Share
