CVN - Convergenet Holdings Limited - Further trading statement

CVN - Convergenet Holdings Limited - Further trading statement                  
CONVERGENET HOLDINGS LIMITED                                                    
Incorporated in the Republic of South Africa                                    
(Registration number 1998/015580/06)                                            
Share code: CVN     ISIN: ZAE000102067                                          
("ConvergeNet" or "the company")                                                
FURTHER TRADING STATEMENT                                                       
In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, a        
listed company is required to publish a trading statement as soon as it is      
satisfied that a reasonable degree of certainty exists that the financial       
results for the period to be reported upon next will differ, by at least 20%,   
from those of the previous corresponding period.                                
Accordingly, and following the previous trading statement published on 27       
February 2012 which advised shareholders that the headline earnings per share   
and earnings per share for the six months ending 29 February 2012 is expected   
to be more than 20% lower compared to the previous six months ended 28          
February 2011, the board of directors are reasonably certain that the revised   
expected decline in the headline earnings per share for the six months ended    
29 February 2012 will be approximately 160% compared to the headline earnings   
per share for the comparable six months period ended 28 February 2011.          
However, earnings per share are expected to be less than 20% different to       
compared to the prior period.                                                   
The trading loss has resulted primarily from poorer than expected results due   
to delays in the awarding and implementation of contracts. Most of these        
contracts have been awarded and could only be reported after the stipulated     
time of reporting of interim results. The company`s largest subsidiary Sizwe    
Africa IT Group (Proprietary) Limited ("Sizwe"),  has  incurred  substantial    
expenses to gear up for these contracts which have subsequently been won and    
are now being implemented.                                                      
This trading statement has not been reviewed or reported on by the Company`s    
external auditors.                                                              
Johannesburg                                                                    
3 April 2012                                                                    
Sponsors                                                                        
Arcay Moela Sponsors (Pty) Ltd                                                  
Date: 03/04/2012 16:00:02 Supplied by www.sharenet.co.za                     
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