Prism chairman Nigel Matthews says while Prism achieved a satisfactory turnaround in the year to June, "a great deal remains to be done".
"Stakeholders will watch the next couple of reporting periods closely to see whether the recovery is as well founded as it needs to be if complete confidence is to be placed in the group again," Matthews writes in Prism`s latest annual report.
"This follow-through will have to take place in what is still a difficult trading environment, both in terms of sales and exchange rate volatility."
For the year to June Prism achieved an after-tax profit of R23.37 million, which compared with a prior-year loss of R292.41 million. Revenue rose from R208.17 million to R304.15 million.
Matthews says he is confident that management has a coherent strategy in place and a clear vision of where it wants to position Prism.
"Until the client base is broadened and the local currency has lost some of its volatility, the group will remain slightly vulnerable and dependent on major contracts."
However, he says that in the absence of a further depressed economy he is confident that the steps taken by the group to focus on its area of core competency will ensure its sustainability.
Matthews says the group is well positioned for the uptake of mobile commerce. "Management anticipates a considerable push towards m-commerce in the foreseeable future as operators that made significant investments in third generation licences start looking at ways to harvest a return."
Prism is similarly well placed to take advantage of the global shift towards the new standard for smart card payments. "In fact, the group is already spearheading this drive with certain of SA`s major retailers and banks, and we anticipate this will result in increasing demand for the group`s products."
Related stories:
Turnaround for Prism
Share
