Shares in software services company Adapt IT plunged 20% on Monday after it warned shareholders after markets closed on Friday that its interim earnings would take a beating.
The shares fell to R1.99 by the close in Johannesburg.
Its headline earnings per share for the six months ended 31 December 2019 would fall by as much as 51.7%, it said in the trading update.
However, on a normalised and comparative basis, the decline was 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,” it said.
Adapt IT will publish its interim results for the six months ended 31 December 2019 on 24 February 2020.
Shares in technology distributor Alviva Holdings also continued to sag on Monday after it warned on Friday that headline earnings per share are expected to fall by between 33% and 41%.
Alviva’s shares fell by as much as 21% to R8.01 in intraday trading on Monday after a similar decline on Friday. They were quoted at R9.72 at 12.09pm on Monday, down 5.2% on the session. — (c) 2020 NewsCentral Media