Mines, factories and salaries in the spotlight on Tuesday
A failed software project is expected to have dragged Alexander Forbes into an interim loss per share, and it is a busy day on the economics front
Scrapping R339m spent on software development is likely to knock Alexander Forbes into a basic loss per share for the first half of its 2019 financial year. The insurance group warned shareholders on November 23 it expected to report on Tuesday a basic loss per share of about 4c for the six months to end-September. It reported basic earnings per share of 22c in the first half of its 2018 financial year. Interim headline earnings per share (HEPS), which exclude the impairment of software assets, would decline by up to 26%, the trading update said. Alexander Forbes said the drop into a basic loss per share was partly due to its decision to scrap a R287m software development project, with an additional R52m cost to “amicably terminate the contract with the primary implementation partner”. Besides the impairment of software assets, earnings fell due to operating profit declining by about 3%, the trading statement said. Tuesday is a busy day on the economics front, with Stats SA schedule...
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