Total Client Services (TCS) has warned shareholders that it expects to report a loss in the first half of the year.
The listed company yesterday posted a trading update, indicating it anticipates a loss per share of between 0.72c and 0.86c, while its headline loss per share is expected to be between 0.19c and 0.33c.
For the six months to August, TCS reported a loss per share of 0.68c and a headline loss per share of 0.72c. Analysts view headline earnings as a key indicator of performance as they strip out unusual items.
TCS did not provide reasons for its anticipated loss. However, in the year to February it experienced severe cash flow constraints, due to delayed payments and one of its major clients - Limpopo Province - being placed under administration.
The group has also been waiting for the Administration Adjudication of Road Traffic Offences (Aarto) Act to come into effect.
TCS provides law enforcement solutions to traffic departments around the country. Products have been designed to comply with Aarto, which will replace the current traffic law enforcement legislation in SA. The Aarto implementation has repeatedly been delayed.
For the full year, revenue gained 3.6%, to R49.2 million, and its total comprehensive loss for the year narrowed 48.8%, to R6 million. Its headline loss improved from R9.6 million in 2011 to R5.2 million.
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