IT retailer Connection Group Holdings is preparing shareholders for a bonus in what could be its last set of public results ahead of the proposed R500 million purchase by furniture retailer JD Group.
Yesterday Connection issued a trading statement saying it expects earnings per share to be between 38% and 43%, and headline earnings per share (HEPS) to be between 35% and 40% higher than the corresponding reporting period of 2004. The results are due out on 11 October.
In September, the JD Group made an offer to buy Connection`s entire ordinary shares at R14.75 per share - the price set on 14 July.
The Connection Group, which owns Incredible Connection, Photo Connection and BeyondIT digital photographic stores, made its JSE debut in 1997 when it raised R48 million.
The group`s financial year runs to 31 August. For the 2004 year, it reported a 35% increase in HEPS to 19c per share and a 39% increase in dividends per share to 25c. This came from an 18% rise in operating profit to R42.4 million with a 15% increase in turnover to R770.6 million.
It attributed this success to a fall in the average selling price of personal computers by 26% to R5 500, with laptops falling by 22% to R9 700. It increased volumes sold by 26% for PCs and 58% for laptops.
Connection`s share price was last seen at R14.70, unchanged from yesterday`s close.
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