ASX-listed technical consulting services provider, CPT Global (ASX:CGO), has revealed it won’t reach a return to profit in the second half of the 2015 financial year.
The company expects to report a net loss after tax of about $300,000 in the second half, citing issues such as contract delays and tight Australian IT market conditions on rates and margins.
In Europe, CPT said it expected risk/reward contracts would generate more revenue in the second half of FY2015, but that will now be realised in the first half of FY2016.
It also experienced delays in client engagements in the North American market, which was due to factors outside of its control, CPT said.
“These delays have put significant pressure on revenue in North America,” CPT said.
Despite noting tight Australian IT market conditions with pressure on rates and margins, it still expects a strong Australian operation performance due to increased opportunities within the financial sector and the re-emergence of state and federal government projects.
“The timing of the benefits is forecast to begin to flow to CPT during FY2016,” CPT said.
The company stated that it has also invested significant time and resources into establishing strategic alliances with two large software companies.
“Both alliances will provide CPT with enhanced sales capability and market coverage across Europe, North and South America, and Australia,” CPT said. “Revenue from these alliances will begin to be recognised during FY2016.”