CA Sales Holdings’s share price surged 8.23% to R8.23 yesterday morning, after it released a strong earnings forecast for the last financial year.
The company that provides specialist retail support services in eight African countries said in a trading statement that it expects headline earnings to between 76.89 cents and 79.87 cents for the year to December 31, representing an increase of between 29% and 34% over the previous year.
Earnings per share were expected to be between 77.21 cents and 80.11 cents, representing an increase of between 33% and 38%.
The company said the increase in headline earnings per share was due to good organic growth from all the operations, as well as the successful onboarding of new clients.
Earnings per share increased by a larger margin than headline earnings per share, mainly as a result of a goodwill impairment entry of R9.1 million in the prior year, which was excluded from headline earnings in the prior year.
The results for the year are expected to be published on March 22, 2023.
BUSINESS REPORT