Listed security vendor SecureData expects its headline earnings per share to drop by about 100% when it publishes its year-end results in October.
The company, which has been without a permanent CEO since Dean Brazier's sudden resignation in the second week of June, says adjusted headline earnings will fall by 80% when compared with last year's figures for the 12 months to July.
SecureData, which distributes security solutions and risk management solutions for the African sub-continent and Indian Ocean islands, did not provide reasons for the decline. FD Johan du Toit has taken over as acting CEO, while the company hunts for a permanent head.
A year ago, it reported revenue slightly down, from R464 million to R458 million. Earnings before interest, taxation, depreciation and amortisation were flat at R57 million. Headline earnings per share were 7.5c.
Adjusted earnings per share, which strips out amortisation charges and unrealised losses on forward foreign exchange contracts, as well as group loans, came in at 13.1c last year.
“Management will issue a further trading statement once there is more certainty on the exact range of the financial results for the year,” it says.
In the first half of the year, the company said slower sales at the local unit due to banks and government holding back on spending resulted in revenue declining from R220 million to R198.96 million.
At the time, Brazier was cautious as to whether spending would return to normal levels in the second half, which is traditionally stronger. He explained it could be affected by the same malaise.
SecureData's second half usually accounts for between 60% and 65% of its annual revenue.
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