Interconnective Solutions, which last year announced a restructure to focus on telecommunications, has reported an attributable loss of R1.86 million for the six months to 31 October 2000.
This compares with an attributable profit of R804 256 at the interim stage in 1999.
Revenue fell 37% to R9.15 million from R14.52 million, which the company says is mainly the result of discontinuing its operations in the media industry.
A R2.13 million loss from operations compares with a previous profit of R566 563.
"Margins have decreased due to the change in the group`s business mix," the group says. "This mix is not a true reflection of the group going forward due to the fact that our core business, Valuecare Telemanagement Services (with margins of 30%), contributed only 10% towards the total group turnover.
An exceptional loss of R313 540 relates to the disposal of the two music interests previously accounted as associates, it adds.
The company also reports a fully diluted loss of 1.5c a share. A year earlier, it reported earnings of 0.8c.
Net cash generated by operations fell from R760 437 to R77 382, while the cash flow from operating activities decreased from R1.22 million.
The group adds that it has been awarded one of four long-term contracts as a premium rate service provider for Telkom.
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