Listed telecoms company the Huge Group expects earnings to surge when it reports its annual results at the end of this month.
In December, Huge said it had to adjust the value of shares it had previously bought so that the price it valued the shares at was in line with prevailing market prices. This resulted in a 9.4 million loss on the value of the shares, which impacted its pre-tax earnings.
Huge bought the 12.3 million shares from directors between July and October last year, at an average price of 360c each. Two directors, CEO James Herbst and Anton Potgieter, were each fined R5 million by the JSE for the share trade, which the company did without telling minority shareholders.
The adjustment filtered through to the company's bottom line, with it reporting a R5.9 million loss for the half-year to August, compared to a R28.8 million profit last year.
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