South Ocean profits bit by impairment

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South Ocean Holdings expected headline earnings a share for the year to last December to be between 20 percent and 30 percent higher than the previous year’s 30.6c, the electrical fittings manufacturer said yesterday.

But earnings a share would come in at a loss, and might be between R1 and R1.10 lower than the 29.3c for the same period a year earlier.

South Ocean supplies light fixtures, lamps and accessories.

It said earnings were affected by an impairment charge of R175 million to goodwill arising from the acquisition of Radiant Group in 2007.

The impairment was the result of decreased Radiant Group earnings.

Results are expected to be published tomorrow.

Shares in South Ocean plunged by 9.68 percent to close at R1.40 yesterday. – Asha Speckman

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