Loss-making corporate Internet services company Cyberhost, which has reported an operating loss for the six months to 30 June 2000, says it has completed its rationalisation exercise.
"Following a difficult 1999, the first half of the 2000 financial year has seen the completion of a rationalisation plan implemented towards the end of 1999," says incoming executive chairman and CEO Baron Agasim-Pereira.
Agasim-Pereira replaces CEO Ian Ward, to whom the company sold the Internet kiosk division, CyberXpress, in August.
The loss-making residential dial-up division has also been sold.
"The company is now focused in corporate Internet services where it is well positioned to expand its range of products and services to the corporate market," Agasim-Pereira adds.
Revenue for the six months rose from R609 868 to R1.09 million, of which R735 289 was contributed by continuing operations.
An operating loss of R1.19 million was recorded, an improvement from a loss of R4.58 million a year earlier.
The company also incurred a R1.81 million loss from discontinued operations and recorded an attributable loss of R2.93 million (1999: R3.92 million).
Current liabilities on the balance sheet comprise trade and other payables of R1.43 million (R489 730) and a bank overdraft of R53 800 (nil), while current assets comprise trade and other receivables of R877 818 (R 4.3 million) and cash and cash equivalents of R965 096 (R5.23 million).
The net asset value fell from 20.19c to 7.55c a share.
The company says the increased turnover following the rationalisation, and the disposal of the loss-making divisions, will lead to an improved performance.
"The company has minimal debt and has adequate working capital in the form of the proceeds from the sale of CyberXpress," says Agasim-Pereira.
The company will also investigate strategic alliances.
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