Alexander Forbes expects lower earnings in continuing operations
Decline attributed to the write-off of obsolete R1bn IT contract
The country's largest pension funds administrator Alexander Forbes said it expects its earnings per share from continuing operations to plunge by about a third when it reports its results for the year ended in March.
Alexander Forbes which went through a series of changes in 2018 following the axing of its former CEO Andrew Darfoor and successive departure of seven other executives said the expected 33.3% to 36.9% decline in earnings per share from continuing operations was a result of multi-million rand write-offs related to a R1bn IT contract whose software had become obsolete before it was even commissioned. It also had to write off goodwill to the value of R317m related to its long-term insurance business...
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