Vesta Technology Holdings has reported a profit of R455 000 for the year to August, compared with a loss of R31 000 for the previous year.
This is despite a 43% plunge in revenue, from R16.17 million to R9.16 million, and the gross profit falling from R9.86 million to R5.34 million.
CEO Frederick Morrison says the results reflect the changes in the market and focus of the company.
Vesta`s shareholding in Vesta WebActive Solutions was diluted from 100% to 50% when it issued 1 000 Vesta WebActive Solutions shares to buy the e-learning business from Campuswise for R50 000.
It then sold a stake in Vesta WebActive Solutions to a black economic empowerment partner in February, reducing its own shareholding to 35%.
The group made a profit of R3.52 million on the reduction of its stake, but also recorded a R3.46 million impairment in the loans to WebActive, which has since been renamed Vesta Learning Solutions.
"As a result of the changes Vesta`s revenue and cost of sales decreased, but Vesta maintained its operational results," Morrison says.
Vesta achieved headline earnings of R569 000, compared with R521 000 for the previous year. This translated to headline earnings of 0.7c a share, compared with 0.6c a share previously. Basic earnings per share amounted to 0.5c, compared with zero the year before.
The group has no long-term debt on its balance sheet, with total liabilities comprising only short-term liabilities of R1.87 million, against total assets of R3.48 million, of which R3.28 million consists of current assets.
The group had cash of R24 000 at the end of the financial year and recorded a net asset value and net tangible asset value of 1.9c a share, up from 1.4c at the end of the previous year.
"Vesta will continue to strive for sustainable long-term growth with annuity revenue streams," Morrison says. "Focus will still be on expansion of existing operational areas including the local council market where the company is beginning to provide products and services."
The Vesta share was untraded at 6c on the JSE yesterday.
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