Investment holding company VenFin has issued a trading update in which it says headline earnings per share for the year to June are expected to be 20% to 30% higher than the 151.4c of the previous year.
The update points out several items that are included in HEPS this year.
These include an increase in the contribution of Sabido to HEPS due to the recognition of a deferred tax asset, a negative fair value adjustment on the Dimension Data convertible bond, one-off restructuring costs incurred by Alexander Forbes, and the effect of accounting for one month of interest and seven months of equity accounted earnings for Alexander Forbes only.
Other factors are an increasing contribution from Vodacom and e.tv, as well as the effect of a share repurchase programme.
"The expected increase is partially offset by the drop in interest income earned on cash deposits in SA, due to a lower average South African cash balance, as well as the taxation charge on offshore interest earned on the cash in R&V Holdings after this company became a subsidiary on 30 June 2004," it says.
The VenFin share, which gained 20c to close at 3 170c on the JSE yesterday, was trading another 45c or 1.42% up at 3 215c this morning.
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