Publications
Partners
Cape Town - Novus Holdings [JSE:NVS] warned in a trade update on Wednesday that it expects its basic earnings per share (EPS) and headline earnings per share (HEPS) for the year to end-March 2017 to be lower than the corresponding period by at least 42% (58.6 cents) and 20% (28c) respectively.
The groups said factors that negatively impacted its HEPS relative to the comparative period include the continuation of tough trading conditions, which had a negative impact on print volumes, as well as losses incurred at the tissue operation while in the process of commissioning additional milling capacity.
The decrease in EPS was exacerbated by impairments to be recognised on unutilised production capacity and related equipment.
Novus confirmed in the same update that it has been awarded the National Department of Basic Education workbook tender and will continue the partnership for a three-year period (2018, 2019 and 2020) following the success of the previous workbook project.
The group also said it has an in-principle agreement with Media24 for a new print contract. Once finalised, it will communicate further details, Novus said.
READ:Commission recommends Media24 divest majority stake in Novus
The Competition Commission recently recommended that Media24 divest its majority shareholding of Novus to Naspers shareholders and retain a non-controlling 19% stake in the company.
According to Media24, if the Competition Tribunal approves the merger condition, it will unbundle the majority of its shareholding in Novus to the shareholders of Naspers, its ultimate holding company.
Novus will release its reviewed annual financial results on or about June 9 2017. The group posted a revenue increase of 4.5% in the six months ended September 30 2016.
* Fin24 is part of 24.com, a subsidiary of Media24.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
