Alviva shares fall sharply on expected earnings drop

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The tech company said its headlines earnings for the year to December dropped by as much as 46%

Shares in JSE-listed technology group Alviva fell sharply on Friday on news that full-year earnings may fall by as much as 20%.

The company said its headlines earnings for the year to December dropped by as much as 46% to between R115m to R130m, from R214m in the previous financial year. Market players reacted negatively to the news, sending the tech firm’s share price 19.55% lower in afternoon trade at ROnce a major player in the sector, Alviva’s share price has fallen close to 60% from its peak in August 2013.

Its distribution unit imports and assembles hardware and software and sells it into Sub-Saharan African markets through re-seller channels, national retail chains, and direct to government and corporates on a limited scale.

 

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