Despite significantly growing its turnover, JSE-listed Core Holdings has suffered from the liquidation of recent acquisition Redsand Interactive, reporting negative headline earnings per share for the interim period.
The integrated communications group says it has suffered from a "difficult period" over the last six months.
The company maintains that the fully diluted headline loss per share of 5.63c for the period can be mainly attributed to the liquidation of Redsand Interactive, which it acquired last year.
The liquidation resulted in a non-trading exceptional loss of R4.41 million on the income statement, a heavy knock with a turnover of R12.7 million for the same period.
Although Core grew its turnover for the comparable period from R7.5 million, the company reported an operating loss of R3.5 million.
Core`s management says the exposure to subsidiary International Fairs and Exhibitions, which invested in the Comdex brand, also contributed to the negative results.
Looking ahead, the group says it has acted to stop the losses and return the group to profitability, and remains confident of future performance.
The Core share price remained unchanged at 10c in early morning trade today.
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