Unihold`s share price dropped 13% in early trade on the JSE this morning after the company issued a profit warning.
The systems integration and e-commerce solutions provider, which is trading under a cautionary related to continuing negotiations, said its full-year results would be lower than the previous year`s results.
The company attributed its failure to grow its profits to poor trading conditions in the SA economy.
The JSE opened only at 10.20am as the exchange was amending its indices to reflect the restructuring of Anglo American, the largest counter on the JSE.
However, by 10.48am the Unihold share had already lost 13.08% or 17c to trade at 113c after 17 deals.
The group said at the release of its interim results in February that it also expected the dilution of its shareholding in Pecaso to have an impact on headline earnings for the year.
At that time CE Gary Harlow said the group was "cautiously optimistic" about profits for the full year, which he expected would not be materially lower than the original forecasts of flat earnings on the previous year`s figures.
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