Having previously cautioned that its earnings would be unusually inflated for the latest financial year, Huge Group believes its earnings will be at least 20% higher than the previously-anticipated figure.
In October, the group revised its profit forecast to include an increase of 34,77 cents per share because of a shorter reporting period – seven months instead of 12 – and the possible effects of the CentraCell acquisition.
It now believes that the actual earnings could be 10% to 20% higher even tham the previous estimate.
Although the acquisition of CentraCell only became effective on 15 February 2008, resulting in a contribution of one month of trading results, the improved performance is primarily due to the increase in contracted annuity income from organic growth of Huge Telecom, the generation of additional operating efficiencies as well as taxable benefits derived from the utilisation by the group of some assessed losses available in CentraCell.
Final results should be published on 26 May.