<B>Salient figures</B>
Intervid results for the year to 30 June 2003,
Previous year`s figures in parentheses:
Revenue: R454.75m (R161.32m)
Operating profit before forex gains, depreciation, amortisation, interest and tax: -R107.24m (-R89.24m)
Profit before tax: -R174.45m (-R48.54m)
Net profit: -R175.46m (-R48.53m)
EPS: -189.3c (-52.9c)
HEPS: -123.5c (-44.8c)
Cash flows from operating activities: -R144.73m (-R6.21m)
Current assets: R286.66m (R594.04m)
Cash and equivalents: R150.15m (R444.51m)
Current liabilities: R139.35m (R227.94m)
"Intervid faces a challenging year ahead and the turnaround of the current loss situation is likely to take an extended period of time," says recently appointed CEO Mark Taylor. "To this end, the board anticipates a further loss in 2004, although this should be significantly less than the loss incurred in the current year."
The group was restructured during the year into two businesses - technologies and regional systems integrators. The restructuring is part of a turnaround programme implemented by recently appointed CEO Mark Taylor.
Taylor says a 216% increase in revenue is due to an acquisition in the UK and regional expansion in Africa, North America, the Middle East and Australia. The lion`s share of turnover continues to be generated outside of SA.
An operating loss of R107.2 million before exchange gains, depreciation, amortisation, impairments, interest and tax was 20.2% bigger than the previous year. "This was primarily due to a significant overhead burden resulting from increased globalisation of the group," Taylor says.
"During the last six months, numerous steps have been taken in all regions to reduce overhead levels to ensure the cost-effective utilisation of resources."
He says the key focus of the coming financial year will be on cash preservation. Growth will still be pursued, albeit in a measured manner.
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