An improved second-half performance at multinational technology group Spescom will not be enough to shake off the effects of a poor first half.
Spescom executive chairman Tony Farah says preliminary indications are that the second half of the financial year, which ended on 30 September, showed an improved performance.
Spescom incurred a loss of R71 million for the six months to end-March, which translated to a headline loss of almost 119c a share.
"Obviously the poor results for the first half will have an impact on the full-year results, but the second half-year has been particularly gratifying, not only in terms of the enhanced performance, but more importantly in showing the early fruits of our investment in the globalisation of Spescom."
Farah says the group may exceed its stated target of achieving 50% of earnings from operations outside of SA by the end of the 2003 financial period.
The SA-based operations have been consolidated and are strongly configured for maximum profitability.
"Two-and-a-half years ago Spescom invested just over $8 million in order to embark on an internationalisation programme. This was financed through direct debt with the corresponding advantage of low international interest rates.
"Although at first sight the group appears to be highly geared, this situation will be reversed as operational hard currency is generated.
"Furthermore, this investment has resulted in highly strategic business for the group which, for the 2003 financial year, is forecast to produce revenue in excess of $25 million."
He says the US operation, Spescom Software, has continued with the momentum reflected in its third-quarter results.
"A number of significant deals were closed during the recent period and we envisage that this trend will continue during 2003."
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