IT retail and solutions company Connection Group Holdings says it has made "a great deal of progress" in restoring its financial health and has returned to profitability.
JSE-listed Connection Group, which sustained a R44.5 million loss in the year to May 1999, reported a profit of R7.1 million for the six months to 30 November 1999, compared with a R6.7 million attributable profit in the same period of 1998.
An operating profit before interest and depreciation of R6.6 million (1998: R16.9 million) was achieved on gross revenue of R333.5 million (R478.6 million). Turnover was lower mainly as a result of the sale of Training Connection.
CEO Pierre Joubert says a comparison of the current results with previous ones are meaningless because of significant changes in structure.
Connection has sold its training division and its stake in Business Connection. It has also closed some retail outlets. Joubert says the disposals have resulted in a greater degree of focus and all remaining operations are profitable.
He adds that the disposals and the group`s return to profitability have significantly improved the net current liability position.
The group reported a R677 000 profit before exceptional items of R6.8 million, relating to the Training Connection sale.
Headline earnings per share of 0.2c were 92% down on the 2.6c of the year-earlier period, while net asset value of 1.0c compares with 24.1c.
Joubert says the group has seen stability return to its financial and operating environments and both divisions are well placed to deliver improved performances in the next six months.
Share
