Directors of JSE venture capital listed company Stella Vista Technologies have warned investors that complete payment of the R24 million contract announced in July will fall outside the 31 August financial year-end results. The company will subsequently not meet forecasts.
An R18 million contract signed in August has also been held back at Stella Vista's discretion as the customer is having payment problems.
The Stella Vista board says if both of the outstanding contracts had been fulfilled, the company would have exceeded forecast turnover.
Stella Vista, which specialises in light-emitting diode (LED) technology and manufactures multimedia display boards, is confident it will still report a profit for the August year-end, even though it will not meet expectations.
The company's operating profit doubled to R2.2 million for the six months to February, with a turnover of R12 million.
Stella Vista also operates internationally through California-based Stardust Communications Systems and directors expect positive results from the offshore operation in the near future.
By 10am today the share was trading unchanged at 25c in light volume.
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