Enterprise software solutions company Omega Alpha International (OAI) says it will not meet its forecasted 40% per annum compounded organic growth for the year to February 2001.
OAI says that as a result of the restructuring of local government and the subsequent nationally imposed moratorium on capital expenditure late last year, certain contracts entered into with the group prior to the 2001 year-end were renegotiated during May 2001.
The group says the associated revenue of about R50 million and the profits from this will now be recognised during the 2002 financial year.
Accordingly, the group has warned that its financial year-end figures, which will be announced soon, will fall short of forecasts made when its interim results were released in October last year.
OAI reported revenue of R54.45 million for the interim period, up 54% from the R35.31 million reported for the year-earlier period.
Net profit increased to R29.52 million (1999: R17.46 million), with headline earnings per share of R15.5c (10.3c).
In line with the JSE regulations, the group has until the end of the month to announce details of its year-end results.
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