JSE-listed Global Technology Limited today announced its annual results for the 12 months ended 31 December 2002.
The group reported an attributable loss of R379 million. Of this, R167 million was related to losses attributable to TEMENOS and the write-down to current market value of its 15% stake in TEMENOS. The operating loss for the period was R139 million, caused primarily by a revenue decrease from R437 million to R348 million, a foreign exchange loss of R22 million, a loss in Global Technology Australasia of R33 million and provisions for doubtful debts totalling R27 million, including the full amount of Zimbabwean debt. The resulting headline loss per share was 55.6c.
Chief Executive Officer, Ray Leonard, comments: "This past year has been the most challenging in Global Technology`s 14 year history. We have recognised where we have gone wrong and we have implemented a number of difficult yet essential decisions. We have embarked on a stringent cost-cutting exercise, reducing our overhead costs by R76 million per annum, effective from July this year.
"We have significantly restructured our management team and board of directors and, in addition, we have identified non-core and non-strategic businesses. One of the key results is that, going forward, our annuity income will cover our total overhead costs."
In addition, Global Technology has procured a further R10 million in support from the group`s major shareholders and bankers, who have accepted the plans. Further to this, the group has committed itself to de-gearing the balance sheet and reducing exposure to its bankers over time. Global Technology is in the process of finalising a rights issue, further details of which will be released shortly.
Leonard concludes: "We expect that new sales will remain under pressure for at least another 12 months and anticipate that the tough times will continue for IT companies for some time to come. In the meantime, we will continue our strong focus on relationship management and customer support and ensure that our customer satisfaction remains at its current high levels."
For further information about Global Technology, visit www.glotec.com.
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