JSE-listed VenFin expects to report a 15% to 25% increase in headline earnings per share for the six months to December.
VenFin is an investment holding company whose income comes mainly from investments in the telecommunications, technology and media sectors.
For the six months to December 2003, VenFin`s headline earnings increased to R372 million from R302 million a year earlier, although a share repurchase programme led to an even greater increase in headline earnings per share (HEPS), from 58.7c to 73.9c.
The company says that, subsequent to approval, Alexander Forbes has become an associated company.
"For the current six-month period ended 31 December 2004, VenFin has equity accounted its 25% interest in Alexander Forbes for one month to 30 September 2004, the financial year-end of Alexander Forbes, and not up to 31 December 2004, as would normally be the case with unlisted associated companies," VenFin says in a trading update.
"Therefore the contribution of the investment in Alexander Forbes to VenFin`s HEPS is not comparable with the six-month period ended 31 December 2003."
Earnings per share (EPS) is expected to be 200% to 220% higher, mainly due to the implementation of the AC140 accounting standard under which goodwill is no longer amortised, as well as lower impairment charges in the six months.
The company says that in future, it will adopt only HEPS and not EPS as the relevant criteria for issuing trading updates, as the income statement frequently includes one-off items that do not reflect the performance of the underlying investments.
VenFin has also announced that CEO Dillie Malherbe will no longer act as deputy chairman, as independent non-executive director John Newbury now fulfils that role.
VenFin`s interim results are expected to be released on 7 March.
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