Sekunjalo Investments CEO Iqbal Surve says the company`s prospects for the year to August are excellent and shareholders can expect a year of significant acquisitive growth.
The investment company is on an acquisition trail that recently saw it buy 24% of technology firm XN Corporation Africa, a subsidiary of London-listed XN Checkout.
The company boasts an IT portfolio worth more than R150 million, including its investments in Sekunjalo Enterprise Management Technology, Health Systems Technologies, Synergy Computing and XN.
However, it was its non-IT interests, specifically Premier Fishing, which led to a headline loss of 5.92c a share for the six months to February, compared with headline earnings of 1.5c a share for the same period a year before.
Surve says the main reason for the lower than expected interim results is the effect of the pelagic operations in Premier Fishing having been unable to fish for four months because of the unavailability of resource stocks, resulting in an abnormally high fixed cost for the pelagic operations during the period.
However, he adds that since February, the business has been on track to catch its allocated quota.
Revenue was up from R129.51 million to R161.28 million, but an operating loss of R16.88 million compares with a previous operating income figure of R9.22 million. A net loss of R12.26 million was incurred, compared with previous income of R7.5 million.
Surve says the group`s acquisitive phase will allow it to build up critical mass in sectors including financial services, healthcare, IT and industrials.
He adds that the interim results are not a reflection on expected full-year earnings and says the group expects earnings for the year to August to be better than those of the previous financial year.
The Sekunjalo share closed unchanged at 68c on the JSE yesterday.
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