Alviva warns of profit slump due to Covid-19
The group has warned headline earnings could plunge as much as 58% in its year to end-June
Technology group Alviva Holdings has warned profits for its year to end-June will more than halve due to Covid-19.
Headline earnings are expected to fall between 52% and 58% from the prior period’s R426m, although Alviva said it was “reasonably comfortable” with the position it now finds itself in.
“Since the imposition of the national lockdown, a huge emphasis was placed on maintaining and improving liquidity to ensure the sustainability of the group,” the trading update read.
Alviva operates in most African countries, and its operations include assembling ICT hardware and software, which it sells it into the sub-Saharan African markets via reseller channels and national retail chains.
The group also has interests in cybersecurity applications.
In morning trade on Wednesday, Alviva’s share was down 1.19% to R5.81, having fallen almost 60% so far in 2020.
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