Embattled call centre company Dialogue Group Holdings is in negotiations that could affect its share price, it says.
The company has been under pressure recently, and in the six months to June reported a loss of R14.6 million, compared with a profit the previous year of R6 million.
This morning, the company's shares were unchanged from Tuesday's close of 22c, which is when it reached its 52-week high on the back of the news that it was in talks.
In September, when it released its interims, the company stated that trading conditions were challenging in the first half of the year as a result of a slowdown in the global economy.
“During this reporting period, management has focused on right-sizing the business and cost containment, which led to a number of retrenchments and relocation of the head office,” Dialogue noted.
The company has cut 65 jobs from Dialogue SA and CallForce, which were hard hit by the slowdown in activity in the financial sector.
Dialogue hopes to reap R26 million a year from cost-cutting initiatives, which should start showing in the second half of its financial year. “With a reduced cost base, the emphasis remains on business development to achieve the group's objective to return to profitability in 2010,” it said.
Chairman Peter Watt said at the time: “Everything we are doing is geared towards making the company a worthwhile investment, and making a profit is a part of that”
Dialogue has cautioned shareholders to be careful when trading shares, as the talks may have a material affect on its stock.
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