EC-Hold, which has reported an attributable loss of R16.28 million for the 18 months to 30 June, says it expects a return to profitability in the coming financial year.
The company`s revenue soared by 165% to R192.3 million, while operating income of R2.18 million compares with a loss of R8.49 million for the 16 months to end-December 2001.
<B>Salient figures</B>
EC-Hold results for the 18 months to 30 June 2002
Figures for the 16 months to December 2001 in parentheses:
Revenue: R192.34m (R72.44m)
Operating income before depreciation: R4.09m (-R6.75m)
Operating income: R2.18m (-R8.49m)
Net income before tax: R2.33m (-R5.37m)
Attributable earnings: -R16.28m (-R4.88m)
HEPS: -3.7c (-4.7c)
NTAV per share: 12c (14.9c)
Current assets: R62.11m (R52.35m)
Current liabilities: R40.52m (R22.65m)
Cash generated from operations: R1.1m (-R3.1m)
Cash and equivalents: R2.1m (R26.99m)
CEO Amir Lubashevsky says obsolete stock and overdue debtors to the amount of R12 million were written off in Sun Botswana and a change in the accounting policy for research and development added R1.8 million to the losses.
The investment in Connect One has been written down as it no longer has synergy with the group`s current business.
Before abnormal items, an attributable loss of R3.8 million for the period was an improvement from the previous R4.9 million loss.
Lubashevsky says the company secured an additional investment of R10 million from the Industrial Development Corporation. Of this, R5 million is reflected in the current period`s cash flow, while the remaining R5 million is due by the end of September.
This had been subject to signing at least two international value-added resellers, which he says has been achieved.
Correlate, in which EC-Hold owns a 10% stake, received $500 000 in the form of an external investment.
"After the effects of the various write-offs reflected in the results, EC-Hold is expected to return to profitability in the forthcoming year," Lubashevsky says.
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