JSE-listed Control Instruments has said the effect of accounting for negative goodwill will dampen headline earnings per share in its interim results.
The vehicle electronics manufacturer told shareholders yesterday that earnings per share are expected to increase between 40% and 60%; however, headline earnings per share are expected to decrease between 15% and 35%. "The major reason for this disparity is the IFRS requirement with respect to accounting for negative goodwill."
Its interim results for the period to end-June are expected to show an increase in revenue between 80% and 100%, and an increase in profit before taxation of between 130% and 150%. However, as a result of a higher rate of taxation, profit after tax is expected to increase between 100% and 120%, it said.
Revenue in the last corresponding period was R176 million, and net profit was R14.5 million. Headline earnings per share were at 22.22c.
The JSE`s listing requirements oblige companies to notify shareholders as soon as they expect their financial results to differ from the previous financial period by more than 20%.
Control Instruments` results for the six months ended 30 June 2006 are expected to be released on 23 August.
By 4.15pm, the company`s shares had tracked down by 2.27% and were trading at R4.30. Its shares closed on Wednesday at R4.40. Its 12-month high is R6.50.
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