ConvergeNet Holdings' earnings per share will be lower as it issued shares during the year.
The company says, in a Stock Exchange News Service announcement, that net profit will be within 5% of the previous year, when it reported net profit of R81.7 million.
However, due to a higher number of shares in issue, headline earnings per share are anticipated to drop by between 20% and 25%. “Earnings per share will remain within the 20% range,” it says.
The company did not quantify how many shares were issued, nor why it issued shares. However, it has acquired companies in the past year, for which it issued stock.
Headline earnings per share were reported at 6.19c last year, while earnings per share were 6.16c. ConvergeNet's results should be released on 20 November.
Its share was unchanged in early morning trade today at 50c.
Related story:
ConvergeNet faces lawsuit
Share
