Storage solutions company Maxtec has reported a net loss of R1.75 million for the six months to 28 February, compared with a year-earlier loss of R2.39 million.
Total revenue fell from R47.14 million to R29.77 million. On a continuing operations basis, year-earlier revenue was R38 million.
An operating loss of R2.28 million compares with a previous loss of R2.9 million or R4.26 million on a continuing operations basis. The company incurred a headline loss of 2c a share (2002: 2.7c loss a share).
Executive chairman George Talbot describes the trading environment as competitive and says further cost reductions were implemented in February, the benefits of which are expected to be realised in this financial year.
He expects the second half of the year to be better than the first thanks to new agreements with suppliers and the group`s tight focus.
<B>Salient figures</B>
Maxtec results for the six months to 28 February 2003.
Year-earlier figures in parentheses:
Revenue: R29.77m (R47.14m)
Operating profit: -R2.28m (-R2.9m)
Profit before tax: -R2.49m (-R3.58m)
Net profit after tax: -R1.75m (-R2.39m)
EPS: -2c (-2.7c)
HEPS: -2c (-2.5c)
NAV per share: 15.46c (17.46c)
Current assets: R18.69m (R32.74m)
Cash resources: R9 000 (-)
Current liabilities: R13.32m (R24.69m)
Cash flows from operating activities: -R3.76m (-R0.21m)
Cash generated from operations: -R3.52m (R1.51m)
Growth in the IBM distribution business is steady and relationships with the reseller channel are constantly improving.
He says efforts are continuing to grow the services-related business and this area is expected to show results in the current six months.
"Cash flow is being tightly controlled but the reseller channel needs to be supported with adequate credit terms."
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