Multimedia communications company Stella Vista Technologies has posted a profit for the year to August, compared with losses for the previous three financial years.
CEO Muris Tabakovic attributes the turnaround to an improvement in sales combined with stringent inventory control.
Revenue for the period rose to R19.84 million from R16.01 million previously. The latest revenue figure includes sales of R7 million to Powerview, which is owned by Stella Vista directors.
Tabakovic says the sales were carried out at arm's-length prices, based on market-related terms and conditions.
An operating profit of R0.43 million compares with a previous loss of R7.72 million. The company achieved pretax profit of R0.66 million, compared with a previous loss of R8.73 million.
The company's R2.79 million net attributable profit compares with a previous loss of R10.84 million.
The company was very active in the sports market during the year, with video displays being supplied to The Kanataka State Cricket Ground in Bangalore in India, a basketball arena in Novi Sad in Serbia and Montenegro, and the Abu Dhabi Cricket Stadium, says Tabakovic.
Other contracts included flight information displays at Perth Airport in Australia and multiple international and sporting events in SA, as well as entertainment and government events.
Cash on hand at the end of the financial year, which amounted to R3.29 million, will be used to settle the company's current liability debt, says Tabakovic.
Current assets at the end of the financial year stood at R3.32 million, against current liabilities of R6.1 million.
A basic profit of 2c a share compares with a previous loss of 7.74c a share, while headline earnings, also at 2c a share, compares with a 7.83c loss a share previously. The group's net asset value improved from 1.67c a share to 3.64c a share.
The Stella Vista share closed 3c or 3% up at 13c on the JSE yesterday.
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