- Technology group EOH has announced a significant drop in its share price as it warns of further losses in its upcoming annual results.
- EOH shareholders reacted negatively to the company’s trading statement, which highlighted the impact of discontinued operations on its financial performance.
- The share price of EOH, valued at approximately R967 million on the Johannesburg Stock Exchange (JSE), plummeted by 5% to R1.52 following the announcement.
- The company stated that its headline loss per share, a key profit measure in South Africa that excludes certain items, is expected to widen by 72.7% to 109.1% to 19c-23c.
- However, when focusing solely on continued operations, the company anticipates a narrower loss of 53% to 62% at 17c-21c.
- EOH attributed the challenging environment to reduced technology spending by the public sector and state-owned enterprises.
- The technology group’s disappointing performance reflects the ongoing difficulties faced by the company, which has been working to address past governance and financial issues.
Stephen van Coller - EOH CEO