Datatec Limited - Interim Earnings up more than 33% and Interim Capital Distribution to be Paid
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international Information and Communications Technology (ICT) group, is currently finalizing its results for the six months ended 31 August 2011 ("the Period"), which will be published on 12 October 2011.
As a JSE listed company, Datatec is required to publish trading statements if the financial results for a given period are more than 20% higher than the results of the previous corresponding period. As described in more detail below, underlying* earnings per share, earnings per share and headline earnings per share for the Period are expected to be more than 20% higher than the previous corresponding period of six months ended 31 August 2010 (the "Comparative Period").
Group revenues for the Period are expected to be approximately $2.4 billion, compared to approximately $2.1 billion in the Comparative Period, with overall margin expansion.
Underlying* earnings per share for the Period are expected to be between 21 and 22 US cents per share, compared to 15.8 US cents per share for the Comparative Period, an increase of between 33% and 39%.
Earnings per share and headline earnings per share are expected to be between 19 and 20 US cents per share, compared to 8.8 US cents in the Comparative Period, an increase of between 116% and 127%.
Interim cash distribution by way of a capital reduction The Board has resolved to amend the group's dividend / capital distribution payment policy from making a single annual payment to making both interim and final distributions with immediate effect. The dividend cover policy of at least three times relative to underlying* earnings per share will apply to both interim and final distributions.
The first interim distribution will accordingly be declared for the period ended 31 August 2011 with the interim results announcement on 12 October 2011.