Blue eyes better interims

2011-10-11 08:32

Johannesburg - Blue Financial Services [JSE:BFS], a micro-finance institution operating in 12 African countries, on Tuesday said it expects to post improved interim results on the back of its restructuring initiatives.

The company advised shareholders that it expected its headline earnings per share for the six months to end August 2011 to be between a headline loss of 0.54 cents per share and headline earnings of 0.54c per share.

Earnings per share are expected to be between a basic loss of 0.58c per share and basic earnings of 0.53c per share.

These compare with the headline loss per share and basic loss per share of 24.59c and 25.01c respectively in the prior comparative period.

The main reasons for the improvements in results per share reported in the comparative period are cost savings generated as a result of right-sizing the organisation; an increase in lending activities and resultant book growth; as well as reduced credit impairments through improvements in collection processes.

There has been an increase in the number of shares in issue due to the recapitalisation of the company and subsequent debt-to-equity conversion.

The current issued shares are 5.8 billion, compared to 624 million as at end August 2010.

"The restructuring embarked upon by the Company during the past financial year and the impact of the Mayibuye turnaround strategy, have contributed to the improvement in financial results," the company said.

"These actions provide a sound platform for growth and returning the group to sustainable profitability in the future," it added.