JSE-listed Prism Holdings has returned to profitability in its latest interim period, recovering from substantial losses at the end of the 2002 financial year.
However, the company still has a way to go to achieve earlier profit levels. Headline earnings of R4.82 million or 1.7c a share for the six months to end-December are still far below the R20.52 million or 9.6c a share for the same period a year earlier.
<B>Salient figures</B>
Prism Holdings results for the six months to 31 December 2002.
Year-earlier figures in parentheses, move in square brackets:
Revenue: R162.05m (R141.04m) [+14.9%]
Operating profit: R11.24m (R25.67m) [-56.2%]
Profit before tax: R5.63m (R22.92m) [-75.45%]
Profit after tax: R4.82m (R20.67m) [-76.7%]
Headline profit: R4.82m (R20.52m) [-76.5%]
Attributable loss: R2.76m (R59.71m) [-95.4%]
HEPS: 1.7c (9.6c) [-82.3%]
Current assets: R36.18m (R250.05m)
Current liabilities: R105.07m (R148.55m)
NAV per share: 19c (129c)
Cash generated by operations: R50.11m (R6.9m)
It has also reported an attributable loss of R2.8 million, although this is a significant improvement on the previous R59.7 million loss.
The group, which operates in the secure electronic transaction market, achieved revenue of more than R162 million, almost 15% higher than in the year-earlier period, with cash generated by operations rising from R6.9 million to R50.1 million.
"Not only has Prism shown increased revenue against the previous comparable period, but revenue achieved in the first six months of this financial year equate to 75% of revenue achieved for the entire preceding 12 months," says CEO Alvin Els.
"Even more important is the quality of earnings reported; R50 million cash was generated by operations and our headline profit would have been some R5.7 million higher had the rand not strengthened to the extent it did in the review period."
The cash generated by operations has been used to reduce various liabilities, including deferred purchase payments (from R13.5 million to R3.8 million), net bank liabilities (from R56.9 million to R27 million) and taxation due (from R15.1 million to R11.9 million).
Els says the rights offer, which opened last week, is expected to raise R33 million and will be used largely to repay banking liabilities.
He attributes Prism`s improved fortunes to new volume orders, specifically in the areas of crypto and SIM; "improved internal housekeeping" with a focus on cutting costs; and increasing international acceptance of Prism`s product and service offerings.
Els says Prism is "cautiously optimistic that the group`s recovery will be maintained as our sales pipeline is strong and several contracts underpinning international and local sales are in hand".
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