Vesta Technology Holdings has warned that it will report a loss for the year to 31 August 2001.
The company has also decided to close down special purpose vehicle Vesta Software Solutions (UK), since it can no longer operate as a profitable entity.
The group says in a cautionary notice to shareholders that there is no longer a viable market for Vesta Software Solutions` product.
All stock will be written off, all other assets recovered and liabilities paid, it adds.
Vesta has told its shareholders to exercise caution when dealing in their shares until the full-year results are announced.
"The principle reason for the decline in earnings is the discontinuation of the operations of Vesta Software Solutions (UK) Limited as well as the pressures in the worldwide slowdown of spend in the IT industry," it says.
The Vesta share was untraded at 11c on the JSE this morning.
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