E-Data Holdings hopes to return to profitability in the next six months, says chairman and CEO James Stride.
Commenting on the Internet communications solutions provider`s results for the six months to 31 March 2001, Stride says the 70% decrease in turnover from the previous interim results was experienced under difficult trading conditions.
Figures at a glance
E-Data results for the six months to 31 March 2001
Current period, with six months to 31 December 1999 in parentheses
Revenue: R1.63m (R5.34m)
Ebitda: -R275 000 (R781 000)
Attributable profit: -R1.51m
(R809 000)
HEPS: -4.52c (2.39c)
Current assets: R987 000 (R10.79m)
Current liabilities: R1.62m (R3.29m)
Net asset value per share: 11.9c (13.9c)
Cash flow from operating activities:
-R720 000 (-R534 000)
Senior management was still devoting "far too much time and effort towards concluding the E-Trade settlement", he says.
"Revenues from the settlement have been realised and the group is now refocused on its core business."
Stride adds that the company has undergone an extensive "right-size and turnaround strategy" since the demise of the E-Trade joint venture.
"We have substantially completed a turnaround strategy for the group and have brought our monthly expenses down to a third of their levels six months ago."
He says the group has finalised a new line of products, and the group is confident of the viability of this line.
"An aggressive product development drive and sales drive has led us to be in a break-even position as a group as of May."
Stride adds that "considering the capital lost in the E-Trade debacle, the directors are happy with the refocused group and hope to bring it back to profitability in the next six months".
The E-Data share was untraded at 1c on the JSE this morning.
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