CCN Holdings achieved a net profit of R18 million for the year to 30 April, mainly thanks to a profit on the sale of the NetActive Internet service provider.
Discontinued operations showed a profit of R14.5 million, which included a R23 million profit on the disposal of Internet service provider (ISP) NetActive to Tiscali.
The group`s main operating subsidiary is Call Centre Nucleus, an outsourced contact centre service provider it acquired from MB Technologies.
Revenue from continuing operations amounted to R6.73 million, compared with R34.79 million the previous year.
CEO Lawrence Brick says the revenue reflects the past six months of trading in the outsourced contact centre environment.
He says the continuing operations` R4.9 million loss was the result of investments in infrastructure, best practice processes and the development of the CCN management team.
"Significant growth in revenue has been achieved, subsequent to the year-end as the final phase of the Tiscali contact centre commenced operations in the first quarter of the new financial year."
<B>Salient figures</B>
CCN Holdings results for the year to 30 April 2003.
Previous year`s figures in parentheses:
Continuing operations:
Revenue: R6.73m (R34.79m)
Loss: R4.85m (R4m)
Discontinuing operations:
Revenue: R23.08m (R9.08m)
Profit: R14.53m
Profit on discontinuance: R23.03m
Net profit: R17.98m (-R0.61m)
HEPS: -7c (-0.42c)
EPS: 24.93c (-0.42c)
Cash generated by continuing and discontinued operations: -R4.07m (-R3.61m)
Current assets: R82.65m (R59.05m)
Cash and equivalents: R68.06m (R48.78m)
Current liabilities: R13.39m (R7.99m)
NAV per share: 106c (80c)
Brick says although a loss was recorded, significant growth in contact centre services has been realised since the year-end and CCN is currently profitable.
Cash balances at the year-end amounted to R68.1 million, compared with R48.8 million the previous year. This is also mainly the result of cash received from the disposal of the ISP division.
Brick says no significant offers have been received from the NetFlorist division.
"Although NetFlorist is still disclosed as a discontinuing operation, the value of the business is increasing and it will continue to receive the group`s support."
He says the division is operating at break-even levels on a month-to-month basis and is continuing to improve its profitability.
Share
