Vesta Technology Holdings has warned that talks to cancel agreements will affect its previously published year-end figures and result in a material loss for the company.
The company previously reported an 83.9% drop in headline earnings per share for its financial year to 31 August 2001.
During the period it closed down its special-purpose vehicle, Vesta Software Solutions (UK), as there was no longer a viable market for its product.
That resulted in a loss of R9.65 million on discontinued operations.
Vesta issued a cautionary notice late yesterday saying that those results are expected to be materially affected mainly as a result of negotiations regarding the cancellation of agreements.
If the talks are concluded, the cancellation will "result in a material loss for the company".
While no further details have been disclosed, it has warned shareholders to be cautious when dealing in Vesta shares until it announces whether the agreements to implement the measures have been finalised and what the financial effects are.
The Vesta share price closed unchanged at 5c on the JSE yesterday.
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