Asset impairment plunges eXtract Group into full year loss

Newrest ASL

In its trading update for the first quarter ended March 31st, eXtract Group Limited is reporting a loss position for its headline earnings per share and earnings per share for the six months ended 31 December 2016.

Giving an hint into the extent of loss anticipated, the company said ‘with the degree of certainty required to specify a 20% range’.

Shareholders are now advised that the company anticipates a headline loss per share of between 7.6 cents per share
and 7.2 cents per share for the period ended 31 December 2016 (HEPS 31 December 2015: 2.2 cents loss per share).

The company anticipates a loss per share of between 355 cents per share and 410 cents per share, constituting a
decrease of between 23.52% and 42.7% for the period ended 31 December 2016 (EPS 31 December 2015: 287.4 cents
loss per share).

The main reasons for the expected loss are asset impairments and the sale of the Fleet Management and Logistics and Industrial Equipment divisions to enX Group Limited, effective 8 November 2016, which resulted in a subsequent loss of those divisions contribution to earnings.

Operationally the remaining business reported losses in the South African operations which was further compounded by the termination of the Botswana operations.