JSE-listed security software company SecureData, which completely restructured in the 2012 financial year, reported a wider net and operating loss in the year to July.
The group's results show its loss from operations widened to R49 million, compared with R3.4 million last year. Its net loss was R38 million, compared with R4 million in 2011, while revenue was mostly flat, at R222 million, compared with R228.6 million in the previous year.
SecureData is now focused on going back to its roots in SecureData Africa, and rebuilding its relationships with the resellers, or retailers, that are the heart of its business. "Those relationships had come under strain, and trust is now being restored through a focused programme led by the group CEO."
In July, the group announced the appointment of Miles Crisp as CEO to take over from FD Johan du Toit, who had been heading up the company in an interim capacity, after Dean Brazier's immediate resignation was announced in July 2011.
Taking steps
In its results announcement, the group says it was completely restructured to "address operational and management deficiencies that prevented it from performing optimally, particularly in SecureData Africa, and to respond to the challenging environment in the markets in which the group operates".
SecureData Africa has weighed on the group in recent years and, in the last financial year, led to a reduction in both revenue and earnings before interest, tax, depreciation and amortisation.
The listed company has sold its European business in a bid to pump cash into its African operation and pay down debt. After the sale, its remaining two units are SecureData Africa and SensePost.
However, SecureData Africa's loss in the full year - R45.9 million, compared with R1 million loss in the previous year - outweighed the R8.1 million profit from SensePost. The African operation's increased loss is due to a poor trading performance, as well as once-off restructuring costs and write-offs, says SecureData.
The entity's once-off costs included R9 million in bad debt provisions and write-downs, stock write-downs of R13.5 million and retrenchment costs of R2.1 million. Two non-core loss-making divisions - Managed Services and Content - were sold to management and staff.
"SecureData Africa is now a smaller and more focused division, with plans to return to profitability in 2013." SecureData also sees the public sector, where sales had declined significantly, as a growth opportunity.
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