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Cape Town - Shares in JD Group tumbled by 6% after it announced that it would likely suffer a profit loss because consumers can't afford to pay their furniture debt.
The group was the worst performer when the JSE closed on Tuesday, reported Reuters.
Its shares fell 6.3% to R25.40.
The credit-based furniture retailer warned earlier on Tuesday in SENS report about its interim results for the period ended December 31 2013 that it expects weak profits.
JD Group expects a loss of between 65 and 70 cents earnings per share for the 6 month period, whilst the headline loss per share will be between 57 and 62 cents.
The impairment provision was increased by R602m to R1 559m and bad debts written off was R495m
In addition, the group has in principle also decided to proceed with a rights issue of between R1 300m and R1 500m.
"The Company believes that this increase of its equity base is appropriate for enhancing its prospects for profitable growth from a solid capital structure."
- Fin24
The group was the worst performer when the JSE closed on Tuesday, reported Reuters.
Its shares fell 6.3% to R25.40.
The credit-based furniture retailer warned earlier on Tuesday in SENS report about its interim results for the period ended December 31 2013 that it expects weak profits.
JD Group expects a loss of between 65 and 70 cents earnings per share for the 6 month period, whilst the headline loss per share will be between 57 and 62 cents.
The impairment provision was increased by R602m to R1 559m and bad debts written off was R495m
In addition, the group has in principle also decided to proceed with a rights issue of between R1 300m and R1 500m.
"The Company believes that this increase of its equity base is appropriate for enhancing its prospects for profitable growth from a solid capital structure."
- Fin24
