Infowave Holdings expects to report a decline in earnings of between 10% and 30% for the year to end-February.
The group issued a trading statement last night, saying that this is despite the fact that turnover and operating profit levels are expected to be maintained.
It says the main reasons behind the dip in earnings are reduced interest rates on investment funds, a full tax charge and the payment of Secondary Tax on Companies (STC) on a dividend paid in June.
Infowave is a Durban-based holding company of IT service providers specialising in software solutions using Oracle technology.
The group reported in October that it had experienced a tough first half of its financial year, during which a 20% increase in operating profit was offset by an increase in the tax rate from 23.7% to 38.8%.
This was because of the recognition of deferred taxation as well as STC on the dividend paid.
The group also warned at the time that it continued to face challenging conditions and that this, together with the full tax charge and STC, meant that the outlook for the full year was less favourable than initially expected.
The Infowave share was untraded at 24c on the JSE yesterday.
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