JSE-listed Interconnective Solutions is engaged in a restructuring process which will result in a focus on telecommunications.
The group says it has achieved the main reasons for listing on the JSE, despite reporting maiden results which are below forecast.
The main reasons for listing were to improve the group`s profile and public awareness, to apply capital to position it for strong growth, and to attract skilled staff.
Chairman and CEO Mark Smith says the forecast results were not achieved primarily because of depressed economic conditions, Y2K concerns, delays in concluding key contracts and because research and development in some divisions took longer than expected, delaying product launches.
Revenue of R23.3 million was reported for the year to end-April, while operating profit was R162 564. The group achieved an attributable profit of R1.2 million, against a forecast R4.3 million.
No dividend was declared, in line with group policy.
Smith says the divisions which fall outside the telecommunications arena have either been or will be phased out.
Interconnective Solutions will focus on three divisions: interactive switching solutions, cellular solutions and data communications.
"The board is confident that the refocused group will yield positive results in the future," says Smith.
"Given the restructuring and refocused group within telecommunications and the local and worldwide growth within this industry, we are optimistic that our developments and skill sets position the company to take advantage of this potential."
The group announced recently it is in talks which could see an empowerment company acquire 40% of the organisation.
The group`s share, which closed as high as 49c earlier this year, ended Thursday`s trade at 15c, unchanged from Wednesday.
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