Ayo says earnings will be less than previously forecast
Technology company blames contract delay for not meeting its forecasts
Ayo Technologies’ headline earnings per share (HEPS) will be about 80% lower than forecast in its prospectus, the investment vehicle of Independent Media Group proprietor Iqbal Survé said in a trading update on Tuesday. Although EPS for the year to August is expected to rise to between 46,45c and 52,99c a share from 7,86c a share in 2017, this figure will be down from the 242,86c a share it predicated in October. The tech group said a delayed contract with “a multinational company” which commenced only in the latter part of the financial year was the main reason it would not meet its forecasts. It said the contract had gone well since its commencement. One-off costs relating to this contract, and several acquisitions that were not concluded within its expected timelines, also played a part in the expected fall in earnings. Ayo took a controlling interest in Zaloserve, a company that owns Sizwe Africa IT, for R165m in September. This is Ayo’s first major deal since listing in Decembe...
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