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Paracon sees earnings higher

Paracon Holdings expects earnings to be as much as 40% higher in its year-end results.

In a statement to shareholders yesterday, the company said: "Headline earnings per share and earnings per share are expected to be between 30% and 40% higher than the previous year."

Its results to end-September are expected to be released on 13 November. Its 2005 results showed headline earnings per share of 8.55c and revenue of R533.4 million.

It attributed the increase in earnings to organic growth, which was "driven by continued buoyancy in the market with ongoing high client demand for skilled ICT resources". The company added that its acquisition of 34.6% in India-based Nihilent Technologies is not included in these results as it was completed this month.

The JSE requires that companies publish trading updates as soon as they are reasonably certain that results will differ by more than 20% compared to the previous period.

Paracon`s shares moved up on the news, closing yesterday at R1.80, compared to Tuesday`s close of R1.74.

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