Bynx has issued a profit warning prior to its 29 February year-end results. The company says it will not make the R8.5 million before tax profit forecast in its prospectus because of an extension to its software development cycle.
In November 1999, Bynx expected to complete deals with a number of European clients. This fell through due to what the company describes as "unforeseen complexities that led to an extension in the product development cycle".
Bynx`s core product is a contract hire and fleet management software system. Imperial Motors makes use of this system locally.
The Bynx board says problems have been fully addressed and clients` software requirements will be met in February. Revenue from this is expected to materialise during the first half of the company`s next financial year.
Quick to reassure investors, the board has announced that additional funding has been secured and a further R10 million is in place to ensure a positive cash position. This will enable the company to take advantage of "opportunities it has created as well as to provide for the working capital necessary to complete current initiatives".
Bynx also announced that it is pursuing significant contracts in the UK and Europe.
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