A volatile rand and weakness in international markets have taken their toll on Labat Africa, which has reported a 96% drop in headline earnings per share for the half-year to 31 August.
<B>Salient figures</B>
Labat Africa results for the six months to 31 August 2003.
Figures for the prior-year period in parentheses.
Revenue: R90.43m (R145.26m)
Net operating income before depreciation: R13.07m (R23.84m)
Net income before tax: R0.49m (R17.8m)
Attributable income: R1.17m (R26.99m)
HEPS: 0.6c (14.6c)
Net flow from operating activities: -R2.63m (R10.15m)
Current assets: R165.08m (R188.73m)
Cash: R12.91m (R35.37m)
Current liabilities: R87.19m (R87.66m)
Total NAV per share: 84c (80c)
Revenue fell to R90.43 million from the R145.26 million of the same period a year before and the group reported net operating income of R13.07 million before depreciation. This compares with a previous figure of R23.84 million.
Attributable earnings plummeted from R26.99 million to R1.17 million and headline earnings fell from 14.6c to just 0.6c a share.
The hardest hit by the rand and markets was the group`s SA Microelectronic Systems business. However, the group has developed a range of products more suitable to the African market and says these initiatives mean the business is well positioned to take advantage of better trading conditions.
CEO Brian van Rooyen says the group has pursued aggressively the development of its local markets to counteract the difficulties of the volatile currency and weak international markets. He expects success from this step but not in the short-term.
"We are hopeful that the rand has now stabilised and that international markets are beginning to improve. We are optimistic that trading will improve from the second quarter of 2004."
Van Rooyen says Labat Africa has expanded its business into other high-growth areas and has embarked on a restructuring process aimed at separating the IT/technology business and the retail operations.
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