PRETORIA - Listed Orion Real Estate, whose earnings have been dented by the write-off of a property in Elma Park in Edenvale, expects to report a 288percent decline in earnings a share to a loss of 0.62cents in the year to June.
In the previous financial year Orion reported an earnings a share profit of 0.33c. Yesterday the company attributed this decrease mainly to the write-off of Elma Park and the downward valuation adjustment of the adjacent undeveloped land, amounting to a total write-down of R74.1million.
However, Orion said headline earnings a share had increased 145percent to 1.24c from the headline loss a share of 2.78c in the previous year. It said this increase was attributable to property revenue increasing 10percent, other income increasing 172percent, costs reducing 9percent, finance costs reducing 24percent and finance income increasing 14percent.
Orion said the R74.1m write-down followed “a protracted and acrimonious levy dispute” between the Elma Park trustees and Orion, which resulted in the High Court placing Erf 195 Elma Park in final liquidation on September 22 last year. However, Orion said future earnings and cash flow of the group were expected to increase.
- BUSINESS REPORT