File image: The Johannesburg Stock Exchange. (File picture: Siphiwe Sibeko).
DURBAN - Peregrine Holdings share price fell by almost 2percent on the JSE on Friday morning after the financial services group warned that its earnings for the six months to end September are likely to fall by 45percent.

However, the group did not provide reasons for the expected decline in earnings per share (Eps) and headline earnings per share (Heps).

It said that Heps and basic Eps for the current period are likely to decline by between 35 to 45percent, which is between 45.1cents a share and 57.9c a share.

Last year the group reported Heps and Eps of 128.7c.

The share price responded negatively to the trading update as it declined to R16.75 a share on the JSE, down from Thursday’s closing price of R17.08.

However, the stock recouped some of the losses in the afternoon to trade around R16.98 before closing 1.23percent down at R16.87 on the JSE on Friday.

Despite the expected decline in Heps and Eps, its ongoing segmental headline earnings per share is expected to increase by between 10 and 15 percent during the period.

Its ongoing segmental headline earnings per share is expected to increase by between 6.9c and 10.3c, to be higher than last year’s ongoing segmental Heps of 68.8c.

Peregrine sold its Broking & Structuring business in October last year for R77million.

The group also received one-time performance fee, amounting to £3m (R56m), received by Stenham, arising from the disposal of a property which formed part of the property portfolios sold to Stenprop in 2014.

Peregrine said last year’s ongoing Heps excludes the earnings of the performance fee and the disposal.

Peregrine will release its results on November 13.