Alexander Forbes expects lower earnings in continuing operations

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Decline in earnings attributed to write-off of obsolete R1bn IT contract

Londiwe ButheleziThe country's largest pension funds administrator Alexander Forbes said it expects its earnings per share from continuing operations to plunge by about a third when it reports its results for the year ended in March.

In an announcement posted on the Stock Exchange News Services late on Tuesday, Alexander Forbes said the capitalised software development assets write-off related to the cancelled IT contract amounted to R287m while it incurred a cost of R50m for terminating the agreement. The company had already disclosed the financial effect of the IT contract in its interim financial results.

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