Simeka Business Group warns that, based on the indicative assessment of goodwill in terms of IFRS, it has decided to impair goodwill of between R170-million and R190-million, which will impact on earnings per share.
This is expected to result in a a per share loss of between 30 cents to 35 cents.
Howeer, the compnay clarifies in a statement that as the adjustment is not a cash flow item it will not have an impact on the core earnings.
Accordingly, headline earnings per share are still expected to reflect a profit of between 4 cents to 5 cents as previously anticipated.
The net asset value per share of the company is expected to be between 50 cents and 60 cents.