Shares in EOH dropped more than 15%, trading at levels last seen a decade ago, before recovering slightly in mid-day trade. As recently as December 2017, share in EOH reached R171.<\/p>\n
Listed-technology group EOH said in trading note on Friday (12 April), that it expects a headline loss of R9.73 per share for the interim period ended January 2019, down more than 400% from a prior gain.<\/p>\n
This prompted yet another big drop in the group’s share price at a time when it is trying to clean up its image, following a number of corruption allegations which prompted Microsoft to cancel its channel partner agreement with the firm.<\/p>\n
Revenue remained stable at R8.428 billion, EOH said, and operating costs remain flat, after the removal of once off items.<\/p>\n
Normalised EBITDA from continuing operations for H1 2019 is R387 million, EOH said.<\/p>\n
The group said it has recently completed a strategic review of the business and presented a strategic plan to the board which was adopted in late March 2019.<\/p>\n
“The strategic review necessitated a review of the carrying value of intangible assets, the identification of business lines no longer core to the adopted strategy and a review of minority investments,” it said.<\/p>\n
The main areas impacting EPS on a once-off basis are:<\/p>\n
Shares in EOH dropped more than 15%, trading at levels last seen a decade ago, before recovering slightly in mid-day trade. As recently as December 2017, share in EOH reached R171.<\/p>\n
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