JSE-listed Omega Alpha International IT Holdings is undergoing a restructuring which has resulted in the resignation of its CEO.
Omega Alpha provides software solutions addressing retailers` mission-critical business information needs.
The group reported at the end of May that its headline earnings had halved to 15.7c per share for the year to February 2001, compared with 32.1c the previous year. The net profit for the year fell from R48.3 million to R28.9 million.
It said it had not met its forecast 40% per year compounded organic growth for the year to February 2001 partly as a result of certain contracts entered into before the 2001 year-end having to be renegotiated in May.
This was caused by the restructuring of local government and the subsequent nationally imposed moratorium on capital expenditure late last year, it added.
It has cautioned that it is now "engaged in initiatives aimed at restructuring the group".
CEO John Flanagan has stepped down, but stays on as a director.
Flanagan, one of the founders of Omega Alpha and responsible for the group`s strategic direction as well as global marketing, was also the founder of Australian-based Australis Microcomputers.
COO Jaap Griessel, also one of Omega Alpha`s founders, has stepped in as acting CEO until a permanent replacement has been made.
The group has issued a notice telling shareholders to exercise caution in their share dealings until further announcements have been made.
The Omega Alpha share was trading 1c down at 11c on the JSE this morning. The share lost 3c to close at 12c on Friday.
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