DURBAN – JSE-listed EOH Holdings surged more than 23 percent on the JSE yesterday, ahead of its much-anticipated annual results today, shaking off the disappointing trading update released by the technology services company last week.
The stock hit R14.12 during the afternoon trade from Friday’s closing price of R11.40.
However, the stock closed 14.04percent up at R13. The group had flagged a loss per share from continuing operations of 2073 cents a share for the six months to end-January in last week’s update.
The group had been under sustained pressure after it emerged that US technology giant Microsoft wanted to pull the plug on two contracts it had with EOH subsidiary, EOH Mthombo, causing a 30percent decline in the share price in one day.
Last year, EOH reported earnings per share of 320c.
It said the main areas impacting its earnings per share were once-off and included impairments to goodwill, intangible assets and equity accounted investments of 1092c.
The group said it incurred additional specific impairment provisions of trade receivables and other financial assets in terms of IFRS 9 of 142c this year.
Despite its disappointing expected results, EOH said its net asset value at the end of January was R4.57billion, including cash of R957million, and its net asset value remained substantially higher than its current market capitalisation of R1.86bn.