JSE-listed technology group Alviva Holdings warned on Wednesday that it’s full-year headline earnings will fall by more than 50%, though it said its prospects have improved since a disappointing set of interim results earlier this year that sent its share price plunging.
Headline earnings per share are likely to tumble by between 48% and 54%, while headline earnings could decline by as much as 58%. Core EPS will fall by between 34% and 40%, Alviva said.
The shares gained 1.9% at of 10.10am, shortly after the earnings update was published.
“Although the financial results are disappointing when compared to those in prior periods, given the events that have transpired since the advent of Covid-19, together with the group’s disappointing results for the first six months of the financial period, the company is reasonably comfortable with the position it now finds itself in,” it said.
“Since the imposition of the national lockdown, a huge emphasis was placed on maintaining and improving liquidity to ensure the sustainability of the group.”
The earnings update comes a day after rival Mustek, which is also listed on the JSE, reported a decline in headline EPS of 8.7% but a 9.4% increase in revenue.
Alviva expects to publish its results on 28 September. — © 2020 NewsCentral Media