"Aggressive remedial action" at JSE-listed Connection Group saw its earnings move back into positive territory in the year to May.
CEO Pierre Joubert says the turnaround resulted from equally good performances by both the group`s divisions - Incredible Connection and Enterprise Connection - particularly in the second half of the year.
At the release of the interim results, which were also profitable, Joubert said the company took strict measures to achieve more focus, including selling noncore assets and closing noncore businesses.
Turnover fell to R671.3 million (1999: 923.6 million), which Joubert says is due to the sale of the group`s training division and non-core businesses in the solutions division.
Operating profit of R22.3 million before interest and depreciation compared with a loss of R12.2 million in the previous financial year.
Operating profit before interest rose to R15.1 million (R26.7 million loss), while a net attributable profit of R10.1 million compared with a R44.5 million loss previously.
Headline earnings per share were 5.12c (22.22c loss). No dividend was declared, as the company says it is concentrating on conserving cash flow for future growth.
"A sound base for future growth has been established and we are pleased with he robust return to profitability following two difficult years," says Joubert.
"We are confident that the decisive steps taken to address challenges facing the company in the past will ensue ongoing stability and further real earnings growth in the new financial year."
The Connection Group share was trading at 36c on Monday afternoon, 2c up on Friday`s close.
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