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BCX earnings to fall

March 24, 2011 • Top Stories

Business Connexion (BCX) expects to see earnings for the first half of the year almost two-thirds lower than a year ago. This drop is due to slower spending and once-off acquisition costs.

In a trading statement for the six months to February the company said diluted headline and earnings per share will come in at 9c to 10c when it reports its results next month. in 2010, BCX reported diluted earnings per share of 27.8c, while diluted headline earnings per share were 27.3c.

This announcement sent the company’s share price down 35c to close at R5.30, a 6.19% decline on Friday’s close.

Apart from the delay in infrastructure and project spending during the first half of 2011, BCX issued 41 million more shares as part of its empowerment transaction, which resulted in more shares being in issue compared with a year ago.

In January, BCX said it was buying out the bulk of retail specialist UCS’s business, in a deal . This deal saw that BCX incur R6.2 million in expenses. UCS sold five service business units to BCX: Accsys, CEB Maintenance Africa, Destiny Electronic Commerce, UCS Solutions, and UCS Technology Services.

The UCS deal is reported to be worth R614.2 million. BCX spent a further R4.4 million on other merger and acquisition deals.

BCX’s results are expected to be published on 14 April.

By Angela Meadon

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