Metrofile Holdings is to report positive earnings and headline earnings per share for the six months to December.
The JSE-listed document and information management group says in a trading statement issued last night that headline earnings per share are expected to be about 3.9c, compared with a loss of 4.8c a share for the same period a year before.
The year-earlier figures have been restated to comply with international financial reporting standards.
Expected earnings of 3.8c a share compare with a previous loss of 4.2c a share.
The group has not provided further details but it has reiterated previous announcements that various debts which are convertible to shares may result in an increase in the number of shares in issue.
These convertible debts include R80.9 million of convertible loan notes (convertible if not paid by 4 March 2009) and R279.1 million of group intercompany claims ceded as security to third-party creditors of Metrofile.
There is also R37.7 million in provisions for a creditor`s claims in subsidiaries that have residual rights against the intercompany loans.
Some of the claims are in dispute and the group is in talks with the creditor.
"Depending on the final quantum of the creditor`s claims, if any, and the value of the group intercompany loans, which are the sole assets of the companies in which these potential claims exist, the group intercompany claims may cease to be part of the group, could become the property of third parties and, if not paid, may have to be converted to shares in Metrofile Holdings," the group says.
In addition, if creditors totalling R320 million are not refinanced or repaid by 4 March 2009, part of those claims could convert to ordinary shares in Metrofile "in a manner which would remove from Metrofile Holdings its entire shareholding in Metrofile".
The Metrofile share closed 2c or 1.7% down at 115c yesterday.
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