Adapt IT’s headline earnings per share for the six months ended 31 December 2019 will fall by as much as 51.7%, the software group said in a trading statement after markets closed in Johannesburg on Friday.
However, on a normalised and comparative basis, the decline is much less precipitous – down by between 5.3% and 15.3% compared to the normalised Heps for the same six-month period in 2018.
“The financial results have been impacted by a combination of factors including the difficult trading environment, especially for certain segments of the business, the adoption of IFRS 16 (which provides guidance for accounting on leases) in the current reporting period and increased finance costs,” the group said.
The financial results for the six months ended 31 December 2018 will be restated, consistent with the 30 June 2019 restatement related to revenue recognition and an expected credit loss provision previously announced, the group said. On a comparative basis, excluding the effects of IFRS 16 and compared to the restated 31 December 2018 interim period, Adapt IT’s Heps will fall by between 17.6% and 27.6% (5.3% to 15.3% normalised).
“Normalised headline earnings is calculated by adding back to headline earnings the amortisation of acquired intangible assets net of deferred tax, as a consequence of the purchase price allocations completed in terms of IFRS 3 business combinations and fair-value adjustments to financial liabilities on outstanding contingent purchase considerations,” it explained.
Adapt IT’s share price has fallen sharply in 2020: it has lost 33% of its value since 1 January. In the past 12 months, it has fallen by 60%.
Adapt IT will publish its interim results on 24 February. – © 2020 NewsCentral Media
