Jasco Electronics Holdings says the improvement in its profitability continued to improve in the second half of its financial year, resulting in at least a 420% increase in full-year "comparative" headline earnings per share.
However, ordinary headline earnings per share are expected to drop by about 50%.
The company emphasises the comparative figure in its financial statements as it excludes the effects of what it sees as an anomaly.
Last year financial director Martin Lotz explained that a net liability of R17.1 million to cover the Khululeka Telecommunications overdraft was reversed when Jasco took over the overdraft.
At the same time, the closure of Khululeka`s Alro operation resulted in an impairment of goodwill, also R17.1 million. Khululeka was acquired with effect from 1 March 2003.
In terms of generally accepted accounting practice, the reversal of the net liability forms part of headline earnings, whereas the second transaction does not. Lotz said Jasco`s belief was that the two were related. As a result, the group publishes what it terms "comparative headline earnings".
Last year, this figure was 4.2c a share.
The group says basic earnings per share for the year to February are expected to be between 410% and 430% higher than those of the previous year.
However, headline earnings per share, which include the anomalies relating to the Khululeka deal, are expected to drop by about 50% from 33.6c per share to between 15c and 17c a share.
"The group continued to be cash generative during the last six months and will end the financial year with no gearing and a stronger balance sheet," Jasco says. The results are to be published on 19 April.
The Jasco share was trading at 226c on the JSE this morning, down 16c or 6.61% from yesterday`s close.
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