ConvergeNet: Further full-year losses expected

ConvergeNet expected to report a headline loss a share of between 4.47c and 5.47c for its continuing operations during the 12 months to August, narrowing from 7.81c a year earlier, the firm said yesterday. The basic loss a share for continuing operations would widen to between 10.62c and 12.16c from 7.72c last year. ConvergeNet owns Structured Connectivity Solutions and CK Solutions. It provides information and communication technology solutions and infrastructure. The group recently completed a restructuring, which included the unbundling of Sizwe IT Group and its subsidiaries. The R120 million transaction was effective from September 1. ConvergeNet added in its trading update that for discontinued operations the basic loss a share was expected to be between 11.86c and 12.38c, compared with basic earnings a share of 2.59c last year. The headline loss a share for the discontinued operations was expected to be between 3.72c and 4.24c, compared with headline earnings a share of 2.6c previously. ConvergeNet shares rose 8.33 percent to 13c yesterday.