Business Connexion (BCX), the subject of a takeover bid by SA`s only fixed-line provider, Telkom, is expecting its bottom line to come in lower than last year.
The company, which is finalising its results for the year ended 31 May 2006, told shareholders that headline earnings per share are expected to be between 20% and 40% lower than the last financial year.
Its results, which should be released before 16 August, are also expected to show earnings per share that are 40% to 60% lower than the last financial year.
BCX stated the reductions are "primarily attributable to the gains realised on the sale of the group`s interest in associates and the settlement of the trademark dispute with the South African Revenue Services (SARS), both of which took place in the previous financial year".
In the company`s results to end May 2005, it said it had reached agreement with SARS on the value of the Persetel and Q Data trademarks claimed as deduction from its taxable income between 1995 and 2004.
"BCX, following the conclusion of an agreement with SARS, paid an amount of R159 million to SARS in full settlement of its taxation liabilities relating to the trademark deductions up to 31 May 2004," it said.
The announcement, made at 1:33pm on Friday, saw BCX shares drop to R8.16 before recovering to trade at R8.45 by late afternoon.
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