Insimbi earnings plunge expected to exceed 100%

Insimbi Industrial Holdings Limited (JSE:ISBE) has issued an updated trading statement, advising investors that both earnings per share (EPS) and headline earnings per share (HEPS) are projected to decrease by more than 100% for the year ended 28 February 2025. EPS is expected to fall between 43.60 and 46.0 cents per share, compared to 11.86 cents in the prior year. HEPS is forecast to decrease between 17.79 and 20.29 cents per share, down from 12.54 cents in the previous period. The primary driver behind this decline is a EUR77.8 million goodwill impairment charge. While the charge affects reported earnings, it does not impact the company's cash position or underlying operational performance. The company notes it had positive cash generation throughout the Current Period. Other factors impacting results include non-recurring costs, associated tax implications, strategic restructuring costs, and foreign exchange losses. ABSA Bank Limited, Insimbi's main banker, has agreed to relaxed covenants up to February 2027. The audited results are scheduled for publication around 30 May 2025.