Bell Equipment has alerted shareholders that expected earnings per share could drop by almost 50 per cent following a dismal goal of delivering financially sustainable results in 2016.
The company stated that full year headline earnings per share dropped to 39 cents versus 138 cents the previous year, while it recorded a decline in profit from R142 million in the previous year to R39 million for 2016.
The Full Year revenue was also impacted as it fell to 6.002 billion rand from 5.901 billion rand a year ago.
The Board said it has initiated a programme to ensure that a successor will be in place when Gary Bell, current chief executive officer, elects to retire.
“The expected decrease in results is due to fraud and mismanagement in the company’s subsidiary in the Democratic Republic of Congo (DRC), as previously communicated to shareholders; to continued depressed conditions in the markets and industries in which the company operates, and to the strength of the rand in the second half of 2016,” Bell said.