HomeChoice continues to be constrained by the adverse impact of Covid-19

HomeChoice International says its operations continued to be constrained by the adverse impact Covid-19 has had on the economy and consumer spending. Tighter restrictions imposed by the government in response to the second wave of the pandemic have further disrupted its operations, it says.

In a trading statement, the direct marketer and fintech company said its performance over the second half of its financial year was likely to match that of the first half when it reported a 55% decline in earnings and headline earnings per share. For the year to end-December, it said both measures would be between 52% and 67% lower than the 436c it reported in 2019.

HomeChoice said its liquidity and capital position remained strong as a result of its focus on cash generation and the management of its working capital. It ended the year with cash on hand of R415 million, up from R378 million at the end of June. It said it was conservatively capitalised to take advantage of any improvements in the economy.

It expects to release its annual results on 15 March. Its shares didn’t trade on Friday, closing unchanged at R24.

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