Integrated Technology Holdings (Itech) says it may dispose of its interest in a joint venture with IQ Health, which it says is partly to blame for a R4.8 million attributable loss.
Itech also says it has decided not to delist its shares from the JSE.
It said in January it would delist as soon as possible, and that minority shareholders had already indicated their support for the move.
The audited results for the year to end-December 1999 are strikingly different from the reviewed results published in April as a result of write-offs.
Operating income fell to R1.4 million for the year, compared with R6.2 million the previous year. This was on revenue of R26.5 million (1998: R40.4 million).
The group posted a net loss for the year of R4.9 million (R6.1 million profit) and a net attributable loss of R4.8 million (R6.2 million profit).
A loss per share of 6.38c compares with earnings of 10.64c previously, while at the headline level Itech reported earnings per share of 1.61c (9.34c).
"The group achieved poor performance as a result of the extremely poor performance of its joint venture with IQ Health, the dispute with the vendor of Data Control Systems and once-off exceptional write-offs required in compliance with Gaap [generally accepted accounting practice]," says CEO Dirk Odendaal.
He says Red Systems has been handed back to its original vendors and the loan account was written off.
"The group is currently in the process of recovering the purchase price previously paid to the vendors." As the majority of the vendors are no longer domiciled in SA, practical recovery of the debt may prove to be difficult, he explains.
"During 2000, we hope to correct the problems we continue to experience with the IQ Health joint venture. This may entail the disposal of our interest in the joint venture, in which event we will revert to shareholders with recommendations for the group."
Neither IQ Health MD Colin Bridge nor IQ Business Group MD Johan Roets were available for comment this morning.
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