The Global Technology (Glotec) share tumbled 10.5% yesterday ahead of a warning that it will report a decline in attributable profit.
The share closed at 34c, having lost 4c from the previous day`s close after 740 150 shares changed hands. It traded as low as 32c during the day.
Glotec published a notice after the market closed, saying that attributable profit for the six months to June will be considerably lower than for the same period last year.
It attributes this partly to the lower associate income from Temenos, the offshore company in which it holds a 15% stake.
Other factors are foreign exchange losses resulting from the rand`s recovery in the first quarter of this year and increased interest costs.
This is despite a substantial increase in overall revenue, operating margins and operating profit.
"For the six months to December 2002, Global Technology expects a continued improvement in operating profit, while Temenos has indicated that it is expecting improved second-half results," it says.
"Furthermore, Global Technology is not expecting the foreign exchange losses to be repeated and anticipates reduced interest costs."
The group`s results are expected to be released on 12 September, and it says the board will provide guidance for the full year at that time.
George Koukis, Temenos chairman and CEO, said at the release of the company`s results for the second quarter to 30 June that Temenos had modified its original projections for 2002 and was approaching the remainder of the year with a degree of conservatism.
"For 2002, we currently expect revenues of $147 million to $153 million, a positive operating cash flow and operating margins at 2001 levels," Koukis said.
The Glotec share gained 1c to trade at 35c by late this morning.
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