Interconnective Solutions (ISolutions) has announced a complete restructure after warning investors that it would not achieve the R4.3 million profit forecast in its prospectus.
ISolutions, the listed venture capital company, says it will restructure its business into a dedicated telecommunications venture. On listing, ISolutions specialised in value-added services in the collection, assimilation and management of data.
The company warned investors it would not make its forecast after tax profit of R4.3 million for the year ending 30 June. However, ISolutions is confident it will still finish the year in the black.
In its maiden results for the six months to 31 October 1999, ISolutions reported revenue of R14 517 037 compared to R9 640 762 for the eight months ended 30 April 1999. Net attributable profit amounted to R804 256 for the interim period.
The ISolutions board says the fundamental reasons for not achieving forecast were due to the depressed state of the economy, the Y2K slowdown and delays in concluding key contracts.
ISolutions will now focus on three of its divisions which offer convergence value in telecommunications: interactive switching solutions, cellular solutions and data communication.
Interactive switching solutions will comprise voice response services offering unified messaging such as text to speech and fax on demand. The company says the acquisition of 60% of Paydirect will also facilitate it to achieve these services.
On the cellular front, ISolutions is in negotiation with one of the mobile networks for the supply/distribution and electronic charging of airtime to cell users.
ISolutions also warned that it is in an advanced state of negotiations with a black empowerment group, which it hopes "will provide significant synergy and leverage to its telecommunications objectives".
ISolutions` share price closed at 15c yesterday, a long way off from the 98c it was trading at a little over a year ago on listing.
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