Kunene Technology has reported a 51% decline in headline earnings per share to 22.1c for the six months to 31 December 2000, from 45.5c in the same period of 1999.
Turnover was up 14% to R612.99 million (1999: R539.1 million) while gross profit of R97.43 million compared with R84.56 million previously.
Tax was substantially higher at R14.53 million (R8.72 million). Newly appointed chairman Zoli Kunene says the Receiver of Revenue had challenged the apportionment of expenses relating to dividend income.
"We are pleased to report that this matter has been settled in a satisfactory manner with the Receiver and all the company`s tax assessments are now current and up to date."
Kunene replaced Keith Kunene, who recently resigned as chairman to deal with allegations relating to his tenure as chairman of the Central Energy Fund.
Headline earnings fell 27% to R11.56 million (R15.9 million).
Kunene says the results exclude the results of Siltek from September and consolidate the results of Grintek for the full period.
"These results, however, do not reflect a meaningful comparison of KTL`s only remaining investment, namely its 167 million shares (57.9%) in Grintek," he adds.
Kunene`s entire shareholding in loss-making Siltek was distributed to shareholders by way of an unbundling, and further shares in Grintek were acquired.
"If Siltek`s results are excluded from the period under review and from the prior comparative period, KTL`s headline earnings would increase by 60.1% and headline earnings per share would increase by 7.6%."
Kunene says there are exciting opportunities for Grintek and the company is well placed to gain from the introduction of new technology flowing from the deregulation of the telecommunications industry as well as from the infrastructure roll-out associated with the third cellular licence.
"New business opportunities based on established strategic partnerships in e-commerce, corporate systems and next-generation technologies will also fuel growth in future years.
"Grintek is now in a position to enhance its organic growth through the acquisition of synergistic businesses in the telecommunications field," he adds.
Kunene Technology has declared a 4.7c (5.6c) interim dividend.
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