The Business Connexion (BCX) share continued to lose ground this morning after giving up 8.4% on Friday in the wake of a negative trading update.
By midmorning today the share was down 25c or 3.3% at 735c, having shed 70c to close at 760c on Friday. More than 1.8 million shares were traded before the market close.
According to the group`s trading update, issued during the afternoon, Business Connexion`s results for the six months to November, which are being issued tomorrow, will show a 60% decline in earnings per share (EPS) and a 7% decrease in headline earnings per share (HEPS).
The group says the results for the prior-year period included a R73.8 million gain on the sale of Mosaic Software. This represented a gain of 30.2c a share at EPS level.
It adds that the 7% variance in HEPS does not take into account the effect of the reduction in associate income after the sale of several non-core investments in the previous period and the payment in the current period of secondary tax on companies (STC).
The R10.2 million STC payment stems from the group`s maiden dividend.
"Taking these factors into account, HEPS growth on a comparable basis is 14%," BCX says in the update.
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