JSE-listed Contlan Holdings has joined the long list of IT companies issuing profit warnings.
The company, which listed on the JSE`s venture capital sector at the end of June last year, says it will not achieve its prospectus forecast of R3.1 million after-tax profit for the year to 29 February.
However, it says it will still achieve a profit.
Contlan attributes its failure to meet the forecast to a "significant slowdown in business in the second half of the year due to the adverse Y2K market conditions".
It joins an ever-growing list of IT companies which have published profit warnings this year, including I-Fusion, Spicer, Synergy, USKO and Bynx.
Contlan, which is an IT solutions consultancy that also offers value-added services, says it is involved in "significant" restructuring talks which may have an effect on the share price.
The Contlan share was unchanged at 18c on Monday morning, having fallen from its highest close of 61c on 1 July.
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