Spescom has returned to profitability, turning last year's 111.5c headline loss a share into earnings of 50.4c a share.
<B>Salient figures</B>
Spescom results for the year to 30 September 2003.
Previous year's figures in parentheses.
Turnover: R355.54m (R366.24m)
Operating profit: R32.58m (-R55.92m)
Net profit before abnormal items: R18.55m (-R70.83m)
Net profit before tax, after abnormal items: R10.9m (-R84.6m)
Profit for the period: R14.73m (-R85.05m)
HEPS: 50.4c (-111.5c)
EPS: 25.1c (-146.1c)
Current assets: R164.67m (R146.21m)
Cash resources: R95.64m (R44.04m)
Current liabilities: R185.21m (R287.92m)
Cash generated by operations: R67.19m (-R53.32m)
Net cash flow from operating activities: R158.27m (-R7.65m)
Turnover declined from R366.24 million to R355.54 million although turnover from continuing operations increased from R339.29 million to R353.89 million.
"Allowing for discontinued operations, turnover reflected a 4% increase despite the strengthening rand that effectively reduced revenues by 10%," says CEO Tony Farah.
A profit of R14.73 million for the year compares with a previous loss of R85.05 million.
"The group remains committed to the reduction of gearing levels," Farah says. "Significant progress has been made in 2003, which is substantiated by the sizeable reduction of debt subsequent to the year-end.
"The remaining debt has been renegotiated with more favourable longer-term repayment periods, at competitive interest rates."
Farah says the group is in talks to increase black economic empowerment (BEE) at the holding level. "In addition, the group is at an advanced stage with regard to the conclusion of a BEE deal at subsidiary level."
He says while global economies are predicting recovery based on a slow turnaround in the US, markets are still not buoyant. "Forecasts must obviously be tempered by realism in light of a harsh trading milieu.
"However, Spescom has successfully embarked on a carefully devised strategic pathway and with this in place, we remain optimistic that the progress reflected in this year's results will continue."
Share
