JSE-listed InfoWave Holdings saw its profit for the year to end-February fall by 17% from R5.95 million to R4.94 million.
InfoWave is a holding company of IT service providers specialising in software solutions using Oracle technology.
InfoWave has two main focus areas, the first being the sugar industry, for which it has many tailor-made solutions. The second area is the development of custom-built solutions for any other industry sector.
"Trading conditions throughout the year have been difficult in the key industry which we serve," says chairman Ralph Collis.
Revenue increased from R28.79 million to R30.35 million while pretax profit of R7.62 million compared with a prior-year profit of R7.31 million. Headline earnings per share fell from 6.76c to 5.50c.
"Due to the company`s results not meeting expectations, the board decided not to award bonuses in order to maintain operating profitability, and also deferred annual increases, due to the market pressure faced in the coming year," Collis says.
However, the board has declared a dividend of 3c a share, payable to shareholders on 14 June.
Collis says the company is also seeking black partners prepared to take on a shareholding of at least 30%.
"This, together with the existing 23% black ownership, will transform InfoWave into a black-owned company. We expect a partnership of this nature to play a key role in board representation, cross-culture growth, as well as strategic business development."
He says plans and prospects for the next financial year remain constrained due to reduced IT spend from a large percentage of the company`s customer base. "We have undertaken some limited cost restructuring to better position ourselves for these circumstances."
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