Cape Empowerment Trust, the JSE-listed black economic empowerment private equity fund which acquired communication and IT company INTeLLA Holdings in August, is confident of meeting full-year forecasts.
The company, which listed in the financial redevelopment sector in November last year, says it is satisfied with its earnings per share (eps) of 11c for the six months to 31 August, and anticipates achieving forecast eps of 20c for the full year to 29 February 2000. Eps for the year to February 1999 was 17.7c.
Operating income of R11.9 million was achieved on revenue of R69.6 million, while after-tax income came in at R8.98 million.
Net attributable income of R8.9 million compares favourably with the previous full-year figure of R14.2 million.
Chairman Chris Nissen says the results of INTeLLA, which was acquired with effect from 1 March this year, were included. The acquisition is expected to be ratified at a Cape Empowerment Trust shareholders` meeting on 6 December.
The group bought INTeLLA from Paradigm Interactive Media for R147 million in cash.
The price is based on warranted profit after tax of R20 million for the year to 30 June and is capped at R222 million if INTeLLA exceeds its profit warranty.
Nissen says R41.9 million of trademarks and goodwill was written off against share premium.
While no interim dividend has been declared, a dividend is expected to be declared by the year-end, depending on the group`s cash requirements.
The group has also issued a cautionary notice, saying it is in talks, which, if successful, could affect its share price on the JSE.
The share was unchanged at 90c on Wednesday morning.
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