The AST Group share tumbled on the JSE this morning after shareholders were warned that the group`s full-year results would be below market expectations.
The group says it became evident after the financial results for the year to 30 June were collated that its headline earnings per share of 20c will be below the consensus forecast of 24c.
Its results, to be released on 13 August, will show headline earnings of about R110 million, while cash generated from operations will exceed R230 million. Cash on hand will also exceed R110 million.
"While AST traded in line with expectations, a management change at the Namibian subsidiary during the last quarter uncovered significant additional losses," it says.
"Immediate corrective action has been taken to fully integrate Namibia with AST`s SAP financial management system. AST`s service to its customers will not be affected."
It says it remains in a closed period until the results are released, at which point more details will be provided.
The share was trading at 60c this morning, down 10c or 14.3% from yesterday`s close.
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