Business Connexion expects lower earnings

ICT group, Business Connexion (BCX) is expecting its interim headline earnings to slip on the back of the sale of its QLink business.

In a trading statement issued on Thursday, BCX announced that it expects to report headline earnings per share (HEPS) of between 15.0 cents per share and 17.0 cents per share (H1 2013: 19.1 cents per share).

Earnings per share (EPS) are expected to be between 51.0 cents per share and 54.5 cents per share (H1 2013: 19.6 cents per share).

“The difference between the HEPS and EPS calculations as well as the decrease in
earnings from the comparative interim period is largely attributable to the sale of the QLink business effective 1 September 2013,” BCX said.

In September 2013, BCX entered into an agreement to dispose of its entire interest in its QLink business unit to Summit Garnishee Solutions for R187.5 million.

According to the group, the sale was necessary as the QLink business no longer formed part of its core strategy, having grown to the extent that it required greater alignment with the financial services sector.

In November, the firm reported a 17.3% rise in operating profit for the year ended August 2013, to R322.6 million.

Revenue increased by 5,9% to R6.17 billion, while normalised diluted headline earnings per share of 52.6 cents, was better than 50.6 cents in 2012.

The group kept its dividend at 20 cents per share.

As part of its strategy to position itself as a global player, in March 2014 the company acquired two African business: Panabiz Nigeria and Botswana leader in point of sale services, Ultimate Solutions.

More on Business Connexion

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Business Connexion expects lower earnings