Synergy and USKO are joining the ranks of IT companies issuing profit warnings. Synergy has also announced the sale of recently acquired Dexterous.
Synergy expects to turn in earnings per share 25% down on the prospectus forecast figure of 5.38c. However, the company says it has already seen an increase in sales and from here on it will be business as usual.
"Essentially there are two reasons which have led to the profit warning, the first revolving around the disposal of Dexterous Developments in which we will incur a small loss, and the second being poor earnings for the period December/January," says chief executive Patrick Toolan.
"These issues have forced us to revise our earnings forecast and we are obliged to warn shareholders in advance that earnings are likely to be down to around 4.0c per share. We apologise for making our investors the victims of yet another IT firm`s `over-exuberance` and pledge our best efforts to gain back their confidence through improved performance."
Toolan says the disposal of Dexterous will incur a loss of between R200 000 and R250 000, but hastens to add that Synergy is very positive about the future. He assures shareholders that the company has already seen a significant increase in software sales.
After markets reacted favourably to the resignation of USKO CEO, John Beck, the troubled company has issued a profit warning ahead of its 29 February year-end results. USKO has also pointed to a slow trading period for the last four months as the reason for reduced profits.
USKO directors have accordingly decided not to issue dividends for the related period, and have also cautioned investors that although strategic and operational plans are in place to correct matters, profits will continue to be down for the next year, particularly the first six months.
Markets reacted unfavourably to both announcements, with Synergy losing 25% by 11am, trading at 45c from 60c. USKO also took a tumble, dropping 8c from its 51c opening, down 15.6%
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