The dearth of major technology projects is continuing to bite listed IT services companies. SMS Management & Technology was the latest to report weak sentiment, last week revealing a 6 per cent rise in revenues for the half to December 31 to $153.5 million, but a 55 per cent drop in net profits to $5.8 million. EBITDA also fell, 48.1 per cent, to $9.4 million, causing SMS to cut its interim dividend to 5¢ per share, well down on the 13.5¢ shareholders received just 12 months earlier.

Though some woes reflect the financial impact of contractual issues and a corporate restructure, much of it is still because fears of a weak economy are stopping large companies from resuming or starting major IT projects.