DURBAN - Information and communication technology group Datatec expects its underlying earnings per share for the year to February to be at least 20percent lower compared with last year due to its sale of Westcon Americas to Synnex last year.
The group is expecting its underlying earnings per share to be at least 2.2 US cents (R0.24), down from 11c compared with last year.
The group sold Westcon-Comstor’s businesses in North America and Latin America (Westcon Americas), as of September 1, and a 10percent interest in the remaining part of Westcon-Comstor (Westcon International) to Synnex Corporation for $630million (R7.53billion) in cash, with the potential for an earn-out of up to $200m in cash.
“The year-on-year decline in underlying earnings per share and headline earnings per share is primarily as a result of the sale of Westcon Americas to Synnex with effect from September 1, 2017, with the earnings from Westcon Americas therefore only being included in the financial year 2018 earnings for a six-month period compared to 12 months in financial year 2017,” the group said.
In the expected results, the group said headline earnings a share would also decline by at least 20percent to 0.4c, from 2c reported a year earlier, while earnings per share were expected to improve 20percent, or 0.28c higher than the 1.4c reported last year.
The group said it would release a further trading statement providing specific guidance on its three earnings per share metrics as soon as practicable during the process of finalising the results for the year 2018.
The company expects to release its full year results on or about May 17.
Datatec shares fell 0.41percent to close at R31.65 on the JSE yesterday.