Business Connexion (BCX) says its interim headline earnings per share are going to be lower year-on-year, after the sale of its QLink business.
The news sent its shares 3.42% lower in intraday trade yesterday, to around R5.65, giving it a market capitalisation of R2.3 billion.
In an announcement to shareholders, the company said headline earnings per share for the six months to February were expected to come in at between 15c and 17c. This compares to the 19.1c it reported in the year-ago period.
Headline earnings per share are seen as a core measure of profitability as it strips out unusual items.
Basic earnings per share are expected to be between 51c and 54.5c, a gain on the 19.6c it reported for the first half of 2013.
The company explains the difference between the two measures, and the decrease in earnings, is mostly because it sold QLink last September for R187.5 million to Summit Garnishee Solutions.
QLink provides a "one-stop collections platform that overcomes the complexity of multiple disparate interfaces to a variety of collection channels, including bank debits and payroll deductions", said BCX at the time of its sale.
The listed company explained the unit had "grown to the extent that its future vision and strategy require greater alignment with the financial services sector" and it no longer formed part of BCX's core strategy.
A year ago, the group reported revenue of R2.9 billion, and net profit of R101.4 million. Its latest results are set to be released on Tuesday.
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