Technology and infrastructure services group Faritec Holdings has warned that its interim results will be below those of the year-earlier period.
The group issued a trading update last night saying results for the six months to 31 December would not have a major effect on the balance sheet, which it says remains sound.
It says it has invested a significant amount of time, effort and capital into its existing services business and several new initiatives.
"While the services business is on budget and the new initiatives are on track, our product business, which has been the major contributor to our results over the last two years, has experienced a slowdown in customer spend in the first half of the financial year."
Faritec performed well in the financial year to 30 June, increasing headline earnings to R17.51 million or 13c a share from R12.78 million or 9c a share the previous year.
In September it announced a new structure which saw its three business divisions - Faritec Enterprise Solutions, Faritec ICP and Faritec Strategic IT Services - become autonomous entities operating under the holding company.
The company has also mentioned plans to have a black empowerment partner acquire a 30% stake in the group.
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