Commerce Centre of Southern Africa, a subsidiary of JSE-listed Datacentrix, has given notice to terminate its largest project.
Datacentrix announced earlier that it does not expect the 70% subsidiary to be profitable until February 2003.
The group has issued a cautionary notice to shareholders saying that Commerce Centre`s board has concluded that its largest project - the hosting of a national product data catalogue for the fast-moving consumer goods industry - is not likely to become profitable in what it deems an acceptable timeframe.
The company has given notice to terminate the agreement with EAN South Africa.
The cautionary says the financial effect of the termination on Datacentrix`s earnings and net asset value per share depends on the outcome of talks between Datacentrix and Commerce Centre`s minority shareholders.
"The maximum impact on Datacentrix`s net asset value will not exceed its original investment in Commerce Centre," it says.
The group expects that the matter will be finalised by the end of February.
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