JSE-listed IFCA Technologies, which reported a R33.9 million loss for the year to December, is moving away from being a technology provider into a diversified investment holding company.
On Friday, the group published its results for the year to December and showed an operating expense of R32 million, after reporting no revenue. A year ago, the group turned over R2.8 million and reported a net loss of R10 million.
The lack of revenue is the “result of a transition phase during which the revenue model is being completely restructured”, says IFCA in a statement to shareholders. It adds that higher operating expenses, up from R3.7 million a year ago, are because of “the corporate actions required to restructure the business model”.
IFCA says it will transform by “selectively investing in well-managed businesses with future growth potential”.
Funding in place
IFCA, which is undergoing a change in control, as 35%-owner Decaweb is offering minorities 8c a share to buy them out, sold its last remaining IT unit, sWare, for R1 000, last August.
The company says it intends wrapping up the purchase of Third Wave and Out & About Marketing and Media (OAMM), among others. IFCA is set to buy all of Third Wave and 45% of OAMM, but the deals have been delayed.
IFCA also signed a $100 million facility with Equity Partners last February, which it has yet to access. It says the facility will be used to fund future acquisitions and will be combined with other sources of funding.
The company, which is trading under cautionary, has also received JSE permission to issue 150 million shares at 7.48c a share. Its stock closed at 8c on Friday.
During the year under review, 186.9 million shares were issued for cash and the proceeds were used to pay creditors, cover operating costs and fund future growth.
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