Gijima expected to reduce FY losses

ICT services company Gijima expects to reduce its headline loss per share for the year ended June 2012, to between 5.00 cents and 5.50 cents from a headline loss per share of 21.73 cents in 2011.

The group expects to reduce its loss per share to the same margins, from 21.84 cents before.

Gijima said that EPS and HEPS for the reporting period were negatively impacted by a net 4.66 cents, comprising of a number of once off items including reversal of an accrual not expected to realise that was created in previous reporting periods (impact 2.69 cents).

It also alluded to costs incurred on the implementation of the new client-centric business model, with a negative impact of 1.67 cents, while unrealised foreign exchange rate losses on the translation of inter-company loan accounts incurred a 0.87 cent impact.

Optimisation costs negatively affected Gijima’s operations by 2.87 cents, while an onerous contract provision in respect of the terms of a reseller agreement disputed by the company accounted for a negative impact of 1.94 cents.

“EPS and HEPS for the twelve months ended 30 June 2012 were in addition negatively impacted by the loss of the SITA SAPS contract from 1 February 2012 as well as the insource of a significant portion of the Absa contract from 1 April 2012.”

“The cost of rationalising the business in line with these contract terminations were borne in the year ended 30 June 2012 and are included in the optimisation costs line-item above,” the ICT group said.

The group further pointed out that basic and headline loss per share, reported for the twelve months ended 30 June 2011, included a once-off expense in terms of a settlement agreement reached with the Department of Home Affairs.

“Should the impact of the once-off settlement expense be eliminated from the comparative period´s results, the expected EPS and HEPS loss of between 5.00 cents and 5.50 cents for the twelve months ended 30 June 2012 compare to a normalised basic and headline profit of 6.16 cents,” Gijima said.

The group expects to publish its results on about 26 September 2012.

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Gijima expected to reduce FY losses