CVN - Convergenet Holdings Limited - Further trading statement
CVN
CVN
CVN - Convergenet Holdings Limited - Further trading statement
CONVERGENET HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/015580/06)
Share code: CVN ISIN: ZAE000102067
("ConvergeNet" or "the company")
FURTHER TRADING STATEMENT
In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, a
listed company is required to publish a trading statement as soon as it is
satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported upon next will differ, by at least 20%,
from those of the previous corresponding period.
Accordingly, and following the previous trading statement published on 27
February 2012 which advised shareholders that the headline earnings per share
and earnings per share for the six months ending 29 February 2012 is expected
to be more than 20% lower compared to the previous six months ended 28
February 2011, the board of directors are reasonably certain that the revised
expected decline in the headline earnings per share for the six months ended
29 February 2012 will be approximately 160% compared to the headline earnings
per share for the comparable six months period ended 28 February 2011.
However, earnings per share are expected to be less than 20% different to
compared to the prior period.
The trading loss has resulted primarily from poorer than expected results due
to delays in the awarding and implementation of contracts. Most of these
contracts have been awarded and could only be reported after the stipulated
time of reporting of interim results. The company`s largest subsidiary Sizwe
Africa IT Group (Proprietary) Limited ("Sizwe"), has incurred substantial
expenses to gear up for these contracts which have subsequently been won and
are now being implemented.
This trading statement has not been reviewed or reported on by the Company`s
external auditors.
Johannesburg
3 April 2012
Sponsors
Arcay Moela Sponsors (Pty) Ltd
Date: 03/04/2012 16:00:02 Produced by the JSE SENS Department.
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