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Imperial sees dip in interim earnings

24th January 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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JSE-listed Imperial Holdings expects its earnings per share (EPS) for the six months ended December 31, to decrease by 21% to 27% to around 700c apiece.

Headline earnings per share (HEPS) are expected to decrease by 13% to 20%, to between 640c and 700c apiece.

This, the company explained in a statement issued on Tuesday, would result from foreign exchange losses, compared with foreign exchange gains in the prior period on various monetary items including working capital, intergroup loan funding and hedging instruments.

Higher finance costs and higher debt levels, which resulted from delays in the receipt of proceeds from assets and businesses held for sale, also impacted on its results for the period under review.

Imperial further explained that higher amortisation of intangible assets arising from acquisitions, paired with prior period EPS being enhanced by profit on the sale of Neska, also impacted on its interim results.

“The prior period HEPS was enhanced by a foreign exchange gain from an internal restructuring, while the amortisation of intangible assets arising from acquisitions is higher in the current period,” it stated.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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