Spicer dominated early trade today after releasing its interim results. The share bounced 30% to 13c on news that the company had returned to profitability with its two remaining companies.
Spicer has reported operating profit of R2.5 million on revenue of R43.4 million, compared to an operating loss of R4.1 million on revenue of R24.5 million for ongoing operations for the comparable period 12 months earlier.
Headline earnings per share came in at 0.1c, compared to a headline loss of 1c for the six months to December 1999.
The group's entire revenue was derived from its two remaining companies, UK-based MIS-Corporate Defence Solutions and Sweden-based Inter IT-Konsult.
"Our strategy for unlocking shareholder value is clearly gaining momentum," says Spicer executive chairman Sas du Toit. "After an exceptionally difficult financial 2000, we can see the group returning to stability, and we have laid the foundation for a profitable future."
This sentiment was echoed by investors, who bought into the share heavily in early morning trade, pushing the share price 3c or 30% to 13c.
MIS-Corporate Defence Solutions, which had been plagued by internal difficulties in the 2000 financial year, has turned the corner, says Du Toit, who has relocated to the UK to assume more hands-on management of the company.
"The situation at MIS-Corporate Defence Solutions has improved materially, so much so that it is operating profitably month by month. The company can scale to many times its current size, so we anticipate strong upside for this business," says Du Toit.
Commenting on the share price, he said: "There can be no doubt that our share price does not reflect the intrinsic value of the group's assets. We will stay operationally focused to ensure we can deliver on the market's expectations, while we find ways to enhance the group's value."
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