BCX update disappoints

Johannesburg, 16 Feb 2007

JSE-listed Business Connexion's latest trading update has hit its shares.

The company told shareholders earnings per share (EPS) are likely to be between 40% and 60% higher when it releases its interim results early next week. However, BCX says its headline earnings per share to end-November are likely to be between 10% and 20% lower than the corresponding reporting period of the previous year.

Headline earnings, the main profit measure in SA, strips out capital, non-trading and certain extraordinary items.

"The improvement in EPS is due to the gains realised in respect of the sale of a portfolio of properties concluded with Growthpoint Properties," it said shortly before the market opened.

BCX's first share trade this morning was at R7.70, but by 10am, the share had lost 0.65% and was trading at R7.60. On Thursday, the share closed at R7.65, which was unchanged from Wednesday's close. Its 12-month high is R8.95 and its 12-month low is R7.

BCX is the subject of a takeover bid by Telkom. The Competition Tribunal will shortly start hearings into the R2.4 billion deal, after the Competition Commission referred the matter to it last year with a recommendation that it not be allowed to proceed. The commission concluded the merger would reduce competition in the sector.