SecureData Solutions is to distribute its primary asset, its shares in ERP.com, to shareholders.
The company received the 33% stake in ERP.com as payment for SecureData's products division, including the Trend anti-virus suite of products, and the SecureData trade name, with effect from 1 August 1999.
It says the decision to distribute the shares was taken after several alternative investment proposals were considered.
"Given prevailing market conditions, none were deemed appropriate," it adds.
SecureData has reported a decline in revenue to R161 000 for the year to 31 December 2000, compared with revenue of R13.68 million the previous year.
A R2.59 million operating loss before depreciation compares with a year-earlier loss of R802 000.
The company incurred an attributable loss of R2.46 million. The previous attributable profit of R40.34 million was largely thanks to the profit on the disposal of the products division.
A headline loss of 3.4c (1999: 0.6c) per share was reported. The company blames the loss on expenses incurred during the wind-down of operations.
The net asset value per share fell to 15c (70.5c).
The company says the directors decided during the first half of the year to discontinue the remaining consulting and technical services divisions.
At the release of the interim results the board said the decision was taken on the basis of the decline in profitability of the divisions.
It says shareholders will be told later about the manner and basis of the distribution.
The SecureData share rose 3c to close at 10c on the JSE on Friday.
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