Financially troubled technology services company Gijima expects losses per share to widen sharply in its full year to 30 June compared to the year-ago period.

It warned shareholders on Monday that it expects loss per share to increase to between 20,52c and 19,46c, from a loss a year ago of 5,28c. The news sent its share price plummeting by more than 14%, to 60c/share, by lunchtime on Monday. However, it later rallied as investors digested the numbers, ending the trading session up by over 7%.

Gijima said it will publish its full-year 2013 financial results on 30 September.

Earnings per share from continuing operations, excluding once-off items, improved during the second half of the financial year.

“Discontinued operations, as a consequence of the once-off impact of the disposal of MineRP, contributed a profit of 8,09 cents to the EPS loss,” the company told shareholders.

“Gijima concluded the disposal of its mining technology and consulting businesses (MineRP) in November 2012 and these are classified as discontinued operations.”

Gijima warned, too, that its headline loss per share for the 2013 year is expected to be between 26,34c and 25,29c from 5,27c in 2012. Discontinued operations contributed a loss of 0,93c to the expected headline per share loss.

Once-off items contributed 15,93 cents and 13c cents respectively to the earnings and headline earnings per share loss from continuing operations.

In May, Gijima shareholders agreed to a rights offer, in which the company raised R150m “to ensure compliance with all its funding covenants” and to finance its working capital requirements.

Gijima announced the rights offer at the end of March after posting a loss of R106m from continuing operations for the six months ended 31 December 2012, from a loss of R69,6m a year earlier. — (c) 2013 NewsCentral Media