Embattled ConvergeNet sees H1 HEPS more than 20% lower
Amid the ongoing hostilities within the boardroom of ICT infrastructure supplier ConvergeNet Holdings (CVN), the group advised Monday (February 27, 2012) that it expects headline earnings per share, for the six months ending February 2012, to be more than 20% lower than previously.
Interim chairman, Sandile Swana, assured stakeholders last week that recent shifts in the company’s board of directors, and moves by majority shareholders to take controlling shares, would not have an immediate impact on the operations of the company.
It followed the announcement that three directors at the company had resigned with immediate effect – including chairman, Sindile Lester Peteni. All exiting directors sold off shares in the company, and Sandile Swana was appointed as interim chairman.
In a statement, Swana clarified that the shift would not have an immediate impact on the operations of the company: “I have taken note of the announcement on 22 February by a group of ConvergeNet shareholders that they have acquired a substantial shareholding in the company which, if combined with the holding of another shareholder would constitute a 53% majority shareholding in ConvergeNet,” he said.
“This take over was not initiated by the board, but the board will facilitate the mandatory offer as required by the regulators. The board of directors will consider that announcement in due course.”
In results for the interim period ended February 2011, ConvergeNet highlighted revenue of R497 million, with an operating profit of R19.19 million.
Fully diluted headline earnings per share from continuing operations increased to 1.34 cents.
ConvergeNet distributes and resells an extensive range of industry products through its subsidiaries including cabling, networking, telecommunication, VoIP, servers and storage, infrastructure management and data centre products.
It said on Monday that a further trading statement will be released once a range has been determined.
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