Stock in JSE-listed Morvest fell 15% yesterday, after the company informed shareholders that earnings would be lower in the first half of the year.
The group told shareholders that it would make a loss per share of between 0.5c and 1c in the first six months of the year, compared to a gain of 4.87c in 2012.
In addition, Morvest expected a diluted loss per share of between 0.5c and 1c, compared with its diluted earnings per share of 3.87c a year ago. Its net tangible asset value, however, will increase to between 5c a share and 6c a share from 3.71c in the first half of 2012.
The news of the expected losses sent its shares down to a new 52-week low yesterday, as they lost 3c, or 15%, to close at 17c.
In a subsequent statement, issued this morning, Morvest adds that revenue gained between 5% and 7%, while headline earnings per share - seen as a key performance indicator - increased between 5% and 7%. Morvest's share improved 5.88%, or a cent, in early morning trade.
Black-empowered Morvest is a holding group with a footprint in SA, Mozambique, Nigeria, India and the US. Its operations are aligned into three key divisions: business support services (including professional services and outsourcing solutions), ICT solutions, and its retail and consumer services unit.
In the first half of the last financial year, it recorded revenue of R445.8 million and total net income of R39 million.
Share