Ixchange has added four directors to its board in an apparent bid to restore the company`s profitability.
Earlier this week Ixchange reported an operating loss of R161.01 million for the six months to end-December 2000, compared with an operating profit of R39.39 million for the same period in 1999.
The company has in the past repeatedly stated its intention to gain market share for its FrontRange Solutions subsidiary through growing revenue, rather than chasing short-term profits.
This did not prevent shareholders from severely punishing the share in January when it lost 40% in one day, from 450c to 270c when the group released a profit warning for FrontRange. It dropped 35% from 208c to 134c this week after the interim results were announced.
The share, which closed at 125c yesterday, has lost more than 95% from R28.50 over the past year.
CEO Derek Kreunen says the new appointments to the board reflect the company`s strong commitment to profitable growth.
The three new executive directors are Ability president Tony Cunnington, Ixchange chief operating officer Malcolm Buxton, and John Hillyard - FrontRange executive vice-president of finance and operations.
Arthur Andersen partner Christo Nel has been appointed a non-executive director.
Other board positions remain unchanged.
Kreunen says the new board has a very strong functional presence as most of the executive directors are employed by Ixchange`s divisional companies.
Related stories:
Ixchange deep in the red
Ixchange share price halves after profit warning
Share
