Simeka Business Group's revenue has slowed down in the year to May, and earnings are also expected to be lower as it writes off more goodwill.
The company says its full-year results, which should be published on 9 August, have been impacted by a once-off impairment of goodwill and intangibles.
Revenue is expected to be between 5% and 10% lower, while headline earnings after tax will be between 45% and 50% lower. Last year, revenue was R752 million, while net profit was R56 million.
Headline earnings per share will be reported at between 5c and 6c, down from the 11.11c reported a year ago.
After adjusting for the non-cash impairment of goodwill and intangibles of R250 million, the company expects to report a loss per share of between 40c and 45c down from earnings per share of 9.13c reported last year.
Simeka said in February that it would write off goodwill of between R170 million and R190 million in the six months to May. The company, however, did not expect to make any further write downs for the rest of the year.
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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