JSE-listed Spescom says the unpredictability of the telecommunications sector is likely to cause it to incur a headline loss of between R10 million and R14 million for the six months to March.
The loss represents at least a R30.6 million swing from the same period last year, when Spescom achieved headline earnings of R20.6 million.
The group says in a trading update that the telecommunications business is fragmented by nature with trading heavily dependent on large deals and a small customer base.
At the same time, the liberalisation of the market has not yet taken place and the impact of deregulation announcements still remains largely unknown, particularly regarding the second national operator.
It also cites delays in the finalisation of long-term contracts and the awarding of new contracts.
Spescom adds that it will issue another update if the figures for the period improve before the results are published.
"The Spescom board expects that the results for the second financial half, ending 30 September 2005, will show a distinct improvement," it says.
The Spescom share closed at 136c on the JSE yesterday, down 6c or 4.2% from Wednesday's close.
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