Listed IT company Hicor has grown revenue for the six months to September by 49% to R24.1 million.
Operating expenses however have jumped from R7 million to R11.5 million, while operating income took a dive from R1.5 million in 1999, to just R66 000 this year.
The company turned in a net attributable loss of R2.2 million and a headline loss of 1.5c, compared to the headline earning of 1.1c per share for the comparable period.
The company attributes the fall in operating income to more product-related revenue and less professional services rendered.
This shift in income, says management, was brought about by unfavourable trading conditions, with pressure on IT companies, in particular in the first half of the year.
The company is suffering additional finance costs, after taking a loan from PSG Investment bank, which carries an 18% interest charge.
Hicor says it will have the remaining R3.9 million settled - out of its own resources - before 31 March next year.
Executive chairman Danny Pringle remains confident for the future.
"Hicor is in the process of signing some local and international contracts. Our business model continues to be bolstered by recurring annuity style income locally, with a healthy portion of overall revenue being generated through the sale of our products earning hard currencies abroad," says Pringle.
Pringle says the focus of the company is currently on a healthier balance sheet through a reduction of gearing and risks. "This is of critical importance for the future of Hicor before the emphasis can shift to profit making."
The Hicor share price has recovered slightly from twelve-month lows of 18c on Tuesday to trade unchanged at 21c today.
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