Planit Technology Holdings, formerly Billcad, has experienced a hitch in its restructuring process, with the sale of its construction IT and process control divisions to Orbes not yet implemented.
Planit, which has reported a headline loss of 2.2c a share for the six months to 31 August, says the holdup is a result of delays in the approval of the Orbes listing.
The company is also taking legal and other steps to settle a dispute with the vendors of Megasub as to the effect of the non-payment of part of the Megasub purchase price.
While Planit`s gross revenue for the period under review more than doubled to R29.4 million from R10.5 million at the interim stage last year, it sustained an operating loss of R9.4 million compared with an earlier profit of R4.2 million.
The board says the "disappointing" results are due to higher than budgeted expenses relating to the development of new products.
"The development of these products was delayed due to problems experienced with the finalisation of the Orbes transaction," the company says. Some products were completed after the period under review and are being distributed in phases.
"Shareholders were warned in the annual report to expect a slow start to the year, but most companies in the group produced poorer than anticipated results."
A negative exceptional items figure of R51.1 million includes a provision of R60.98 million against the amount of the Megasub purchase price already paid, although the Megasub results have not been included since the vendors have taken back the shares.
The headline loss per share compares with a previous earnings figure of 1.6c.
The board has warned that it is likely the full year`s results will also be disappointing.
"The full year`s results will largely depend on market acceptance of the new products now being launched. To date, the level of acceptance of the new products has been good, but it is likely that the benefit of the income streams will only be felt in the next financial year."
Planit has invested heavily in several Internet-related "thin client" products and says it has created a base for substantial annuity income growth in the future. "In common with a number of Internet companies, Planit should see the benefit of its development efforts in the next few years," it says.
Planit`s share was trading at 5c late on Wednesday morning, down 1c from Tuesday`s close, after about 766 100 shares changed hands in 15 deals.
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