Stella Vista, the JSE-listed multimedia communications systems company, continued to be active in the local and international sports market during its latest fiscal period, it says.
CEO Muris Tabakovic adds that the company has also made inroads ahead of the Cricket World Cup to be held in the West Indies next year.
Stella Vista designs multimedia communication systems, including displays, control equipment and software for several applications. Its products include scoreboards, video display screens and combined text and graphic messaging displays.
"Stella Vista has been particularly active in the international markets in the period under review, namely India, West Indies and Europe," he says, commenting on the company's results for the six months to February 2006.
Despite the international activity, revenue dipped slightly, from R9.7 million to R9.56 million, although the operating profit rose 67% from R0.29 million to R0.48 million.
"The cash was utilised to finance the inventory of completed displays," says Tabakovic, who adds that the company has received confirmed orders for these displays.
As a result, the balance sheet records a surge in inventories, from R3.32 million at the end of August 2005 to R7.68 million at the end of February.
"The inventory on hand will be at an acceptable level once the sale has been recorded," Tabakovic says.
He points out that sales of R7.6 million were to a related party, namely Powerview, a company owned by Stella Vista's directors.
"These transactions were carried out at arm's-length prices, based on market-related terms and conditions," he says.
The group recorded a pre-tax and attributable profit of R0.49 million (2005: R0.41 million), and earnings and headline earnings per share of 0.35c (0.3c).
The Stella Vista share was untraded at 16c this morning.
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