Alviva: A nicely charged technology plan
For shareholders with a longer-term view, the current share price might prove a most inspirational buy
A cursory glance at the share price of Alviva over 12 months might suggest this technology counter is under considerable strain.For the best part of a year it has been dribbling down, understandable in light of the dour economic outlook. The share price really lost traction after the release of the interim results in early March. The half-year showing was disappointing — but the performance did not justify such a collapse.The interim period was clearly a difficult time for Alviva if the ravaged bottom line is anything to go by. But some number crunching offers a better perspective, with the revenue line of R7.4bn (last year R7.7bn) and earnings before interest, tax, depreciation and amortisation R525m (R460m) looking respectable.The damage to the bottom line came with a higher depreciation and amortisation charge of over R150m. Earnings came in at 94c a share — well below the 146c of 2019, and this means full-year results will come in far from the 275c a share posted in the year to ...
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