Technology infrastructure and services company Faritec Holdings managed to reverse the losses reported at its interim period, although it reported a net profit of only R514 000 for the year to June.
<B>Salient figures</B>
Faritec Holdings results for the year to 30 June 2003.
Previous year`s figures in parentheses:
Revenue: R282.48m (R304.4m)
Profit from operations: R4.61m (R19.23m)
Profit before tax: R0.74m (R22.16m)
Net profit: R0.52m (R17.15m)
EPS: 0.4c (12.9c)
HEPS: 5c (13c)
Current assets: R105.7m (R154.68m)
Cash and equivalents: R18.83m (R82.94m)
Current liabilities: R75.25m (R84.98m)
NAV per share: 69.2c (68.8c)
Cash flow from operating activities: -R11.21m (R22.93m)
"The second half of the year was an improvement over the first half, and as stated in our trading update of 4 March 2003, Faritec has made a profit for the year to 30 June 2003," says CEO Simon Tomlinson.
"The past financial year has been a difficult one for the IT industry and Faritec has felt the effects of the tough trading conditions."
Full-year revenue dipped by 7% to R282.48 million, although Tomlinson says revenue in the second half was 25% higher than the first half.
Tomlinson says the company will continue to invest and grow its business and that Faritec achieved more in the past year than any other year since its inception.
"We concluded a significant black economic empowerment transaction, developed a number of new businesses and solutions, kept costs under control and made a profit. This all took place under harsh economic and trading conditions."
Faritec announced in April that an empowerment consortium led by the J&J Group had acquired a 30% stake in the company. Tomlinson says the deal is already having a positive effect through providing new business opportunities and assistance with the transformation of Faritec.
"The prospects for the future of Faritec are upbeat, with the real positive financial benefits from our new strategy, empowerment transaction and significant investment in new offerings only beginning to be realised over the next three years."
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