Shares in listed software business Adapt IT fell 10% in morning trade on the Johannesburg Stock Exchange (JSE) on Tuesday (1 October), after the company warned of a decline in earnings.
The group also noted that it will delay its financial results. “Shareholders are advised that the release of the Company’s financial results for the year ended 30 June 2019, is to be delayed.
“The accuracy of financial reporting is of utmost importance to the directors of Adapt IT and accordingly, the audited financial results will be released on SENS (Stock Exchange News Service) on or about 14 October 2019,” it said in a statement.
Adapt IT said that headline earnings per share from continuing operations are expected to decline between 10.19% and 15.28%, from 65.63 cents before.
It also anticipates a decline in earnings per share from continuing operations of between 18.02% and 24%, from 64.97 cents per share in 2018.
“The financial results have been impacted by a combination of factors including the difficult trading environment especially for certain segments of the business, the application of new accounting standards, an impairment to an asset (fixed property) held for sale, foreign exchange movements and increased finance costs,” Adapt IT said.
“Notwithstanding these circumstances, the business remains resilient, has an expanded business strategy and is well positioned for growth,” it said.
Shares in Adapt IT declined 10% on Tuesday, to R4.52, having given up 5.5% by the end of play on Monday.