JSE-suspended Cyberhost, which reported a profit in its latest results, has entered into agreements to buy out an Open Plan IT platform, as well as certain brands from Top Restaurants.
The company yesterday reported its results for the 14 months to end-August and said it received revenue of R209 000. The company also reported pre-tax profit of R157 000 and after-tax profit of R3.7 million, which occurred as a result of a deferred tax asset.
Cyberhost`s acquisition of the Open Plan IT platform and certain brands from Top Restaurants, effective from the beginning of September, has been approved by the JSE, a required condition as they involve a reverse listing.
The company told shareholders the Open Plan IT platform is a Web-based, real-time, complete management information and control system, which integrates back-office information with the point-of-sale systems. The company already holds the distribution licence for Open Plan.
"The system allows management to draw down into the information of each restaurant, anywhere in the world through the Internet," it said. The platform - to be provided to the restaurant industry - will be bought for R2 million and will be paid for in shares.
Leisure industry
In addition, Cyberhost acquired restaurant brands from Top Restaurants including The Famous Butchers Grill, Upstairs Asian Fusion, Amici`s and The Cape Fish Company. It will pay the R13 million by way of shares.
<B>Fast figures:</B>
Cyberhost`s 14-month figures
The previous 12-month period in parenthesis
Revenue: R209 000 (R73 000)
Operating profit: R157 000 (R50 000)
Pre-tax profit: R157 000 (R50 000)
Post-tax profit: R3.7m (R50 000)
Headline earnings: R3.7m (R50 000)
HEPS: 3.64c (0.10c)
Current assets: R243 000 (R215 000)
Current liabilities: R199 000 (R278 000)
Current ratio: 1.22 (0.77)
The company said it acquired these assets to "create a captive client base for the Internet and Web-hosting products of Cyberhost and to deliver a superior product and service to its intended client base".
In addition, it plans to diversify its operations into other sectors in the leisure industry, which it sees as a growth industry in SA.
After the implementation of the acquisitions, Queensgate, the controlling shareholder in Top Restaurants, will hold an effective 71.8% shareholding in Cyberhost and will be its controlling shareholder.
"The Open Plan IT platform is an integral part of the strategy going forward to expand the Top Restaurants brands. Queensgate`s intention is to house all its restaurant brands and its Open Plan IT platform within Cyberhost in order to create a branded restaurant package on a franchise basis that is IT-driven," it said.
Return to profitability
Cyberhost, which has not declared a dividend, has returned to profitability.
The company, which focuses on software, IT, communications, Web hosting and Internet connectivity, said that during the period under review it had entered into a distribution agreement with Top Restaurants for the Web-based integrated Open Plan restaurant management system in anticipation of entering into formal agreements with Queensgate and Top Restaurants.
"This has resulted in the company realising a profit during the period under review."
The organisation said that, as a result of its poor performance and financial position over the last few years, it has not previously been able to raise deferred tax on assessable losses.
However, because of the revenue earned from the distribution agreement during the year under review and the acquisitions, the company has returned to financial stability and profitability.
This enabled the company to raise a deferred taxation asset as of the end of the period, which had a once-off large positive impact on Cyberhost`s earnings, it said.
The results for the 14 months reflect attributable and headline earnings of 3.64c per share, compared to the previous 12-month period of 0.10c per share. Cyberhost`s shares are currently suspended but last traded at 1c.
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