CCI Holdings, formerly Y2KTec, says most of its business areas performed according to expectations in the six months to June, helping it report a R1.46 million headline profit.
Y2KTec changed its name in mid-January after acquiring Coetser Cradock International through the issue of shares.
<B>Salient figures</B>
CCI Holdings results for the six months to 30 June 2002
Figures for six months to 31 August 2001 in parentheses, move in square brackets:
Turnover: R7.55m (R1.04m) [+626.6%]
Operating profit: R1.7m (R417 820) [+307.3%]
Exceptional items: -R3.18m (--)
Profit before tax: -R1.72m (R382 988) [-549.8%]
Net profit after tax: -R1.72m (R382 988) [-549.8%]
Headline earnings: R1.46m (R382 998) [+280.5%]
HEPS: 0.455c (0.365c) [+24.7%]
Current assets: R3.71m (R380 296) [+876%]
Current liabilities: R6.34m (R1.49m) [+326.7%]
Net flow from operating activities: R828 498 (-R232 100) [+457%]
It said it would continue operating the business as a payroll software vendor and retain the payroll administration software package Payslyp.
CCI provides a range of professional business services to the small and medium enterprise sector. Services include monthly accounting, administration and IT, payroll and pension administration, company secretarial, taxation compliance, business consulting and sourcing of finance.
The company announced last month that it had acquired the business of MMJ Accountants for R3.15 million with effect from 1 June.
"The group finalised the reverse listing activities at the end of December 2001, and has settled down and focused more intensely on its revenue-generating activities," says CEO Mike Hill.
"To date, the acquisition of MMJ Accountants has been finalised with effect from 1 June 2002, which has added well to this focus."
Hill says the exceptional item reported on the income statement relates to this acquisition, as the group`s policy is that no goodwill is to be carried on the balance sheet.
"Most of the business areas have performed to expectation and the continuing streamlining of systems will ensure increased profitability in the second half of the year."
The group`s gearing is being reassessed and the board will look at equity funding.
Hill says the board is optimistic about future prospects. "The group is extremely well positioned in the market to take advantage of its unique integrated business services model and client relationship management marketing strategy.
"Clients tend to focus more on their core business and neglect their business administration. As a result, business owners will increasingly seek to outsource business services. The group will take advantage of these market developments to augment organic growth."
The CCI share was untraded at 8c on the JSE by midmorning today.
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