Traffic management company is struggling

Total Client Services says revenue was down almost a third for the year to February because of delays in rolling out its system, and a change in the status of another contract.

TCS, which narrowly missed having its shares suspended as it put results out just after 5pm on the last day of its grace period, provides law enforcement solutions to traffic departments around the country.

The company's products and services have been developed to comply with the new Administrative Adjudication of Road Traffic Offences Act (Aarto), which will replace the current traffic law enforcement legislation in SA.

TCS provides integrated traffic law enforcement solutions, which includes technology, proprietary application software and administration services, to local authorities and provincial administrations.

However, despite being awarded a tender by the Ekurhuleni Municipality on the East Rand, delays in rolling out the system did not compensate for a lack of revenue from its Cape Town deal. The company will provide the East Rand metropolitan cameras, computers, software and related aspects such as cabling.

Revenue declined 28% to R71.7 million, and 13% of the decline was due to the company losing the contract with the City of Cape Town.

The company lost its bid to continue providing traffic contravention systems and services to the City of Cape Town, as its price was too high. However, its contract was extended up to the end of this year, to allow it to wrap up all offences that were in the system up to June last year.

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