Simeka Business Group will write off goodwill of between R170 million and R190 million.
Last year, Simeka said that, for the six months to November, it expected headline earnings and headline earnings per share to be between 40% and 50% lower, while earnings and earnings per share would be between 55% and 65% lower than the previous year.
In the previous six months, to November 2008, it reported headline earnings of R42.6 million, while headline earnings per share were 8.8c. Earnings per share were also 8.8c.
However, the goodwill write off is not a cash flow item and will not have an impact on the core earnings. As a result, headline earnings per share are still expected to reflect a profit of between 4c and 5c, as previously expected.
Simeka does not expect to write off any further goodwill in the year to May.
The empowered group is involved in outsourcing, business support services and technology. It has been listed on the JSE's Alternative Exchange since 2004 and has a presence in SA, Africa, the Middle East and the UK.
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