Micrologix has posted its final financial results as an IT company. The firm will be involved in the clearing and forwarding business after its acquisition of Spectrum Shipping is made final.
Micrologix began its listed life in 1998 as a hardware and software development company, but was plagued by profitability, liquidity and cash flow problems.
The Gandalf Trust stepped in late in 2000 to become Micrologix`s controlling shareholder and to perform a rescue operation for the flailing company.
Negotiations undertaken by the trust resulted in Micrologix announcing in January that it would acquire the business of clearing and forwarding company Spectrum Shipping through a reverse listing.
Micrologix announced year-end financial results today in what it describes as "the final chapter in Micrologix`s unhappy history as an IT company".
Revenue of R255 995 (R2.1 million) was reported for the year to December and the company reported operating income of R5.6 million compared with an operating loss of R29 million for the 2000 financial year.
However, these results include income of R1.8 million as Micrologix`s share in the profit of Spectrum Shipping should the shareholders approve the acquisition of the company at the general shareholders meeting on 19 March.
The transaction will also see Micrologix reporting headline earnings of 0.4c per share, compared to a headline loss of 3.6c per share for the comparable period.
Should the deal be finalised, Micrologix will change its name to Spectrum Shipping and begin its new life operating as a clearing and forwarding intermediary to local exporters and importers.
The Micrologix share was trading 1c down at 21c today. However, the counter is looking much healthier than it did when the Spectrum deal was announced two months ago, when the share was trading at 1c.
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