JSE-listed Ayo Technology on Tuesday said it expects to report higher attributable net profit of between R142-million and R162-million for the financial year ended August 31, compared with the net profit of R16.7-million posted for the prior financial year.
The group expects to report basic earnings per share (EPS) of between 46.45c and 52.99c, a surge on the EPS of 7.86c achieved in 2017, but a decrease of between 78.16% and 80.86% on the company’s forecast of 242.68c apiece.
Ayo further expects headline earnings per share (HEPS) for the 2018 financial year of between 47.57c and 54.12c, up on the HEPS of 5.66c the prior year but 77.70% to 80.40% lower than the 2018 HEPS forecast of 242.68c.
The decrease in EPS and HEPS compared with the 2018 forecast is mainly attributable to a postponement of a contract with a multinational company to the latter part of the year, while preparation work for the implementation of the contract incurred certain one-off costs.
Further attributions to the lower-than-forecast values include acquisitions that were not concluded within the expected timelines and the delay in another acquisition announced in September of a company that has revenues in excess of R1-billion, strong cash generation with cash from operations of R75-million and earning before interest, taxes, depreciation and amortisation of R70-million.
Ayo plans to release its 2018 financial results on November 8.