Shares in JSE-listed software company Adapt IT rose slightly on Wednesday afternoon after it said normalised headline earnings per share could increase by as much as 16% for the year ended 30 June 2018.
Normalised Heps are expected to be between 83.64c and 91.54c, reflecting an increase of between 6% and 16% compared to the 78.96c reported in the year ended 30 June 2017.
Heps will be between 9% and 19% higher, it said.
It explained that the normalised Heps number is calculated by adding back to headline earnings the amortisation of acquired intangible assets net of deferred tax as a result of the purchase price allocations and fair-value adjustments to financial liabilities on outstanding contingent purchase considerations.
Earnings per share are expected to be between 27% and 37% higher than last year’s 58.74c, Adapt IT said.
The shares were trading 0.6% higher at R8.30 shortly after 3pm on Wednesday. The share price has come under considerable pressure in the past 18 months, however. It has lost 17.2% in the past year and is trading at just half of its all-time high above R16/share set in October 2016.
The company will report its 2018 annual financial results on 16 August. — (c) 2018 NewsCentral Media
