Industrial, analytical and allied technology group Set Point returned to profitability in the six months to 28 February.
<B>Salient figures</B>
Set Point Technology Holdings results for the six months to 28 February 2002
Figures for the year-earlier period in parentheses:
Revenue: R89.39m (R166.38m)
Operating income: R8.54m (-R7.59m)
Income before tax: R11.73m (-R17.58m)
Attributable income: R9.89m (-R13.91m)
HEPS: 2.5c (-4.9c)
Current assets: R71.57m (R118.16m)
Cash resources: R2.83m (R1.09m)
Current liabilities: R57.39m (R94.26m)
NTAV per share: 15.2c (17.6c)
This was despite revenue which was almost half that of the same period a year earlier, the result of selling or closing various businesses.
CEO Mark Smith says the improved results, although not comparable with those of the year-earlier period, were achieved through higher margins, lower costs and reduced borrowings.
"The group is now cash positive and borrowings should continue to decline," he adds.
Smith says all operating and financial ratios have shown meaningful improvement, including interest cover at 3.5 times and a debt-to-equity ratio of 80%, compared with 240% previously.
Set Point says the restructuring and refocusing of the group is effectively complete.
"Emphasis will now move from restructuring to growing the group's business units both internally and through external alliances," Smith says, adding that the group is now smaller but sharply focused on its integrated core activities.
With all divisions continuing to trade profitably and generating positive cash flows, headline earnings in the second half of the financial year are expected to "reflect a continued satisfactory performance".
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