CS Holdings has warned that its full-year headline earnings per share will be substantially lower than those of the previous financial year.
The group said in February at the release of its results for the six months to end-December that the pipeline of potential business had increased considerably in terms of value and quality.
However, it says now that while substantial contracts were available in the market and CS Holdings had the appropriate skills, credentials and capacity to compete for them, a number of contracts have either been delayed or awarded much later than expected.
"Furthermore, the extreme US dollar/rand exchange rate fluctuations have negatively affected some of CS Holdings` major customers in the mining and manufacturing sectors, which in turn affected their IT expansion programmes."
The group says sales in the third quarter were considerably slower than expected and the contract delays resulted in a "considerable" attributable loss for the third quarter.
The fourth quarter is expected to be profitable and the results for the year to end June are expected to show a profit before goodwill amortisation, although full-year headline earnings per share are expected to be down substantially on the previous year.
For the six months to end-December, CS Holdings achieved a net profit of R12.13 million and headline earnings per share of 8.37c. It achieved headline earnings of 21.74c in the year to end-June 2002.
The group says the total order intake in the fourth quarter has been "most satisfying with a value in excess of R200 million of executable work for the next financial year. These new sales, together with current annuity business, translate into a committed order book of close on R400 million of executable revenue for the next financial year."
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