Total Client Services (TCS) saw revenue drop by more than half in the first half of its financial year to August.
TCS 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 (Aarto) Act, which will replace the current traffic law enforcement legislation in SA.
However, the company says it continues to battle with delays in finalising income on fines issued, which affects its revenue. In addition, delays in rolling out Aarto across SA have resulted in uncertainty around issuing of tenders within the industry.
The implementation of Aarto has been delayed several times and it will now only come into effect next April, after being mooted for inception initially in July. The new law will see drivers lose points off their drivers' licences for offences.
TCS says the Fifa Soccer World Cup also delayed finalising traffic offences as officers were redeployed for the duration of the tournament.
Hopeful
The company reported turnover down 55%, to R21.49 million, and its after-tax loss increased to R6.56 million, from R350 000 a year ago. Loss per share increased to 1.7c per share, from 0.09c last year.
Despite the widening loss and lack of revenue, TCS is confident that it will be able to save costs and new contracts will benefit its figures going forward. TCS says it will relocate its head office, trim staff and roll out a contract with Ekurhuleni.
Roll-out of the Ekurhuleni Metropolitan Police Department tender has moved slower than anticipated, due to delays in the granting of site approvals.
TCS has also secured tenders to supply Cederburg, Khara Hais and Overstrand. Its tender to supply and fit camera equipment to 20 police vehicles for the Limpopo province is progressing, and the company received contract extensions for Mogale City and Emfuleni Municipality.
TCS was spun out of Labat and listed separately in April 2008. It provides integrated traffic law enforcement solutions, including technology, proprietary application software and administration services to local authorities and provincial administrations.
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