JSE-listed Zaptronix has maintained its profitable status, thanks to an agency deal that saw it gain additional net income.
However, although Zaptronix has reported a net gain for two reporting periods in a row, its revenue declined in the six months to February, dropping from R9.1 million to R7.4 million.
The company's bottom line moved from R1.8 million in the red, to a net gain of R826 000. At its August year-end, it reported a net gain of almost R2 million thanks to income from I-to I Technology Solutions, which it is managing under an agency agreement.
Zaptronix, which offers tracking, energy and metering services, says its business units are still hampered by a slow economic recovery and its margins are under pressure as companies keep a close eye on costs.
“Prospective customers are taking longer to make the investment decisions to install or upgrade equipment, which is affecting operational efficiencies,” says the company. It adds that it continues to focus on cost control.
Management income
Zaptronix has three entities: Zaptronix Metering, Duo Tracking Services, and a Site Risk business, which is owned by I-to I Technology Solutions, but managed by Zaptronix.
Last September, Zaptronix said it would buy I-to I Technology Solutions for R6.6 million, and would issue 440 million shares to settle the amount. Zaptronix says it will send out a circular to shareholders to request approval for the buyout shortly.
In the interim, the company has been managing I-to-I and benefiting from its net profit, which accounted for R700 931 of Zaptronix's net profit of R826 000.
Wrapping up the I-to-I deal will strengthen its financial position and create the opportunity to integrate the business, which will lead to further savings, it says.
Zaptronix adds it is investing in a broader range of tracking equipment and is upgrading its applications and systems, which will allow it to “remain a profitable niche player in this industry”.
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