Investors in Cavmont Capital will be grappling with the Trading announcement from the company that is forecasting earnings per share to be about 5655% lower as compared to that for the six month period to 31 December 2017.
The movement in profitability is attributed to increased impairment charges and operating expenses, according to a statement issued by Company Secretary Rita Mapara Ndhlovu in Lusaka. Operating expenses for the holding company have increased by K19.5m year on year on the back of increased investment in infrastructure. In addition, they have also been investing in their human capital in a bid to ensure that their personnel remain relevant in a dynamic industry, the statement further stated.
The loses recorded appear to be a continuation of the company’s performance at the end of financial year ending June 2018 where they made a loss of K41.6 million during that financial year citing increased operational expenses and impairment charges, according to a report by the Daily Mail published on 23 October 2018 on their website.
At the helm of the holding company is Peet van der Walt who took over as Interim CEO from Charles Carey in October 2018. Peet’s tenure thus far has been marred by continued cleaning up of the Cavmont balance sheet following more impairments being forecast according to their statement. However, their announcement also comes with the cautionary note that the preliminary findings have not been review by auditors. Furthermore, the company expects to publish in the local press before the close of March 2019, their half year results.