Dynamic Technology Holdings says its results will be lower when it reports its half-year figures later this week.
The company says in a voluntary trading statement that its results for the six months to August are expected to show a decrease of between 10% and 20% in earnings and headline earnings per share.
Last year, the company reported earnings and headline earnings per share of 8.1c, an improvement on the previous year's 7.3c a share.
Dynamic Technology Holdings specialises in application software and provides tailor-made solutions. It typically uses a blend of existing and custom-built software and components and offers solutions based on both Microsoft .Net and Java development platforms.
The group employs in excess of 140 staff and operates out of Gauteng and Cape Town.
Dynamic says the decline in earnings is mostly due to the “impact of the generally poor economic conditions” on its business. It explains that operating margins on core services have come under increasing downward pressure due to pricing pressure from clients. “We have had to adjust our pricing to retain several large contracts,” says Dynamic.
In addition, its specialised IT recruitment business, The Talent Exchange, incurred an operating loss of about R880 000 during the half-year before it was discontinued. This had a material impact on the group's earnings for this period.
Companies are required by JSE rules to alert shareholders once they are aware that earnings will differ by 20% from the previous period. The company is expected to release its results on Friday.
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