Total Client Services says revenue was down almost a third for the year to February because of delays in rolling out its system, and a change in the status of another contract.
TCS, which narrowly missed having its shares suspended as it put results out just after 5pm on the last day of its grace period, provides law enforcement solutions to traffic departments around the country.
The company's products and services have been developed to comply with the new Administrative Adjudication of Road Traffic Offences Act (Aarto), which will replace the current traffic law enforcement legislation in SA.
TCS was spun out of Labat and listed separately in April 2008. It provides integrated traffic law enforcement solutions, which includes technology, proprietary application software and administration services, to local authorities and provincial administrations.
However, despite being awarded a tender by the Ekurhuleni Municipality on the East Rand, delays in rolling out the system did not compensate for a lack of revenue from its Cape Town deal. The company will provide the East Rand metropolitan cameras, computers, software and related aspects such as cabling.
Revenue declined 28% to R71.7 million, and 13% of the decline was due to the company losing the contract with the City of Cape Town.
Growth plans
In addition, the company wants to make sure the Ekurhuleni contract is rolled out as planned. Since February, further municipal tenders were awarded to the group, including Khara Hais, Overstrand, Kokstad, Harrismith and Limpopo Province.
TCS has also pinned growth hopes on the rollout of Aarto, which has yet again been delayed. Government this week said the new points demerit system would only be implemented countrywide next March. It is currently active in Pretoria and Johannesburg.
In addition to the new revenue streams, the company implemented a rationalisation strategy before the end of the year, which should provide cost savings in the year ahead.
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