Johannesburg –
Imperial Holdings will report lower earnings for the first half of the year as
foreign exchange losses and higher finance costs impact profit.
In a statement
issued on Tuesday, the listed company said it expects single digit revenue and
operating margin growth in the first half to December.
It notes
earnings, headline earnings and core earnings per share will be hit by foreign
exchange losses, higher finance costs higher amortisation of intangible assets
arising from acquisitions.
In addition, the
diversified group says, the corresponding period saw earnings per share
enhanced by profit on the sale of Neska, while headline earnings per share benefited
from a foreign exchange gain from an internal restructuring.
These are
stripped out of core earnings per share, it explains.
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The company had,
on November 1, said it would see single digit revenue growth and a moderate
decline in operating profit from continuing operations for the year to June.
It says this
outlook is unchanged.
The group’s
earnings per share will be 21 to 27 percent lower at between 640 and 700c,
while headline earnings per share will be between 13 and 20 percent lower,
coming in between 640 and 700c a share.
Core earnings
per share will be less affected, at 6 to 13 percent lower between 810 and 750c
a share.
Its results
should be published on February 21.
BUSINESS REPORT ONLINE