The AYO Group has posted a trading statement, warning of lower earnings for the year ended 31 August 2020.
The group expects to report basic earnings per share (EPS) of between 4.34 and 10.58 cents per share, representing a decrease of between 75,8% and 90,1% compared to EPS of 43.76 cents per share reported for the prior year ended 31 August 2019.
It also expects to report headline earnings per share (HEPS) of between 6.82 and 13.06 cents per share, representing a decrease of between 69,9% and 84,3% compared to HEPS of 43.40 cents per share reported for the prior year ended 31 August 2019.
The group states that that EPS and HEPS compared to the prior year is primarily as a result of an increase in impairment expenses and fair value losses of the group due to the impact of Covid-19. In addition, the significant decline in the prime lending rate during the year had a detrimental effect on interest income earned by the group.
The results are expected to be released on 20 November 2020.