GijimaAst has alerted shareholders to the fact that its reported basic earnings per share (EPS) and headline earnings per share (HEPS) for the six months ended 31 December 2009 are expected to improve by more than 100% to between 8.60 and 9.00 cents from the reported profit per share for the six months ended 31 December 2008.
The company is currently finalising its results for the six months ended 31 December 2009, which are planned for release on 23 February 2010.
GijimaAst's profits have in previous reporting periods been impacted by foreign exchange translation differences on consolidation of its intergroup loan accounts denominated in foreign currencies. These translation differences no longer impact the company's profits and are, from 1 July 2009, recorded within the company's equity.
This treatment is in line with International Accounting Standard 21: The effects of Changes in Foreign Exchange Rates, and follows management`s assessment and classification of the underlying intergroup loan accounts as part of GijimaAst`s net investment in the relevant non-trading foreign operations.
Should the impact of these foreign exchange translation differences be eliminated in the comparative reporting period, GijimaAst's earnings per share for the six months ended 31 December 2009 are expected to improve between 20% and 40% from the normalised earnings per share for the six months ended 31 December 2008.