Shares in listed technology group, EOH, came under renewed pressure on Thursday, slumping nearly 10% in afternoon trade on the JSE.<\/p>\n
The company’s share price declined by 9.26% or R5.51 to R53.99 shortly before 16h00, having dropped as much as 20% on Wednesday after warning that it expects to report a substantial decline in headline earning per share for the six months ended January 2018.<\/p>\n
In a market update on SENS on Wednesday, EOH said it expected its HEPS to decline by between 20% and 30% from the prior year, although\u00a0total revenue for the six months is expected to be approximately R8.4 billion, an increase of about 16% indicating a market-share increase, it said.<\/p>\n
Earnings before interest, tax, depreciation and amortisation (EBITDA), EOH warned, is expected to be between R980 million and R1 035 billion, reflecting a decline of between 5% and 10%.<\/p>\n
“Despite the challenging general market conditions during this period, most areas of the business coped well. However certain areas in the business, particularly those operating in the public sector, have under-performed and did not timeously adjust their cost base;<\/p>\n
“In view of the challenges during the period, EOH adopted a deliberate customer retention strategy whilst sacrificing some margin,” the group said.<\/p>\n
Shares in the company had climbed to nearly R75 in mid-day trade on Tuesday – after it said it would undergo a major restructure which would see it form two independent businesses – having slumped to below R27 in late 2017.<\/p>\n