JSE-listed ConvergeNet expects its earnings to be at least 20% lower in the year to August.
In a statement to shareholders, the group said headline and earnings per share for the 12 months would be more than 20% lower, compared to the previous financial year. It says it will release a further trading statement once a range has been determined.
For the year to August 2011, ConvergeNet reported revenue of R1 billion, a gain on 2010's R784 million. Basic earnings per share were 2.66c, a slight decline on the 2.89c reported in 2010, while headline earnings per share improved to 2.7c from 1.98c.
In the first six months of the year to February, revenue fell from R496 6 million, in 2011, to R416.5 million. The group reported a total loss of R6.3 million, compared with a R17.7 million gain in the first half of last year.
ConvergeNet said delays in inking contracts and "substantial" expenses at some subsidiaries gearing up to carry out deals led to a R27.7 million operating loss, compared with a R19.2 million operating profit last year.
The group recently sold its remaining 15.05% stake in Future Cell to Pepkor, for R40 million, and has undergone a change in ownership.
In February, a consortium led by Trinity Asset Management bought a controlling stake in ConvergeNet, and said it aimed to oust several directors, including former CEO Pieter Bouwer.
The purchase of the majority stake led to minority shareholders being offered 26c a share to sell their holdings. In total, the consortium now has control over 60% of the vote.
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