IT solutions integrator Comparex announced to the market on Friday that its African division will report lower second half trading profits as compared to the first half of the financial year.
It also told investors that due to deteriorating trading conditions in Europe, it would be unlikely that its European operations would reach profitability for the 2002 financial year.
Accordingly, the group says it has effected further retrenchments in its Spanish and Netherlands offices, laying off an additional 52 staff members.
Comparex management pointed out that the company`s balance sheet remains strong, with cash resources of around R3 billion.
The group says despite these tough trading conditions, should interest rates and exchange rates maintain their current positions, it would still show some growth in its headline earnings when books close on 31 May.
Comparex reported headline earnings of 85.9c per share for the 2001 financial year, showing an increase of 43% in year-on-year growth.
In August, Comparex CEO Rian du Plessis told ITWeb that the company expected a tough first six months due to the global slowdown, but he said the company still expected to show growth for the full year.
The company issued the trading update after markets closed on Friday, but traders were quick to punish the share this morning. According to Sharenet, the Comparex counter had lost 7.5% by midmorning, swapping hands at 930c.
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