DVT restates earnings

Johannesburg, 05 Jun 2008

AltX-listed DVT Holdings has restated its earnings for the 12 months ended 29 February.

Basic earnings per share (EPS) have declined 21%, from 18.3c to 14.4c. Headline EPS (HEPS) decreased 22%, to 14.1c from 18c.

In a notice to shareholders yesterday, the company explained the downward move was based on a recalculation of its weighted average number of shares. This took the weighted average number of shares to 42 million from the 33 million declared previously.

CEO Chris Wilkins admits it is unfortunate that the company had to make such a decision on its maiden results. However, he is confident this is best for shareholders.

"The changes are based purely on accounting practices in terms of how companies recognise shares. When we posted our annual results in April, we made sure to post reviewed rather than final results. This has allowed us to make this change within the JSE's processes," he explains.

The dilutionary effect of the share restatement also gives investors a better idea of what to expect going forward in the EPS and HEPS lines, says Wilkins.

"Nothing in our financial statements has changed except for the share recalculation. We posted a phenomenal year, even with the dilution, and to my mind it is better for our shareholders to have a slightly lower figure off which to forecast."

DVT shares lost 6% to close yesterday at 85c. However, only 11 500 shares changed hands.