Explorer has emerged from a year-long sabbatical, announcing it will aggressively move into the African banking market along with the Mauritius Commercial Bank and Explorer`s majority shareholder, Loita Capital Partners.
Explorer listed on the JSE in 1999, launching the first independently branded Visa card.
It has since been plagued by lawsuits, management changes and cash flow problems. Mauritius-based Loita Capital Partners came to its rescue in January last year, with a cash injection in exchange for a majority shareholding.
Yesterday, the company announced its results for the year to December, describing the period as a year of consolidation.
"The main focus during the current year under review was to strategically lay the foundations for re-establishment of the business," says Explorer management.
The group reported a consolidated loss of R7.9 million for the year, but management says its "prudent" approach during the year helped to scale back its headline earnings loss to 3.2c per share, compared to 25.91c reported during the 2000 financial year.
After this period of "re-establishment", Explorer says it will move into the African market with its Explorer cards.
The move will be backed by Loita, utilising Loita`s financial services, banking products, and card and loyalty products. Explorer will also have Loita`s established market in Africa from which to leverage its new card offering.
Mauritius Commercial Bank will provide a banking licence, deposit-taking facilities, Visa/MasterCard licence and issuing capabilities, back-office infrastructure, card management systems and funding.
Explorer aims to enter Africa, including Malawi, Botswana, Mozambique and SA.
The listed company will earn its income from the venture in the form of royalties and value-added products on issued cards.
After taking care of the Explorer overdraft, the company`s management says the new venture will add to future income with minimal increases in operating expenses and working capital.
The Explorer share was trading unchanged at 5c this morning.
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