Total Client Service (TCS) continued to lose ground in the year to February, its recently-published results show.
Although listed companies only have three months from the end of their reporting period to publish results, TCS only issued its year-end results on Friday. The company, which has been under business rescue, saw revenue slump 37% to R28.3 million, and increased its headline loss per share.
TCS notes in its results commentary that its revenue slump was because its Ekurhuleni contract - to deliver an integrated traffic contravention management system - ended last December. It adds its efforts to "improve efficiency and the service offering" started to deliver results as it managed to cut back on costs.
However, earnings before interest, tax, depreciation and amortisation (Ebitda) declined, and it reported a negative year, with a negative Ebitda of R11.1 million. Its pre-tax loss grew to R18 million, compared with R8.2 million a year previously, and its headline loss per share increased to a loss of 4.76c compared to a loss of 2.03c.
TCS, which has been awaiting the implementation of the Administration Adjudication of Road Traffic Offences Act (Aarto) to improve its prospects, notes this law's implementation has been delayed. Earlier this year, the Road Traffic Infringement Agency said it was gearing up to have the demerit system ready across the country in the second half of the year.
The controversial system is already running on a trial basis in Johannesburg and Tshwane. Its implementation has been several years in the making. TCS notes an implementation date has yet to be announced.
Planning ahead
Despite its pains, TCS did report new contract wins, including Mandeni, Mnquma and Sundays River. It adds: "The performance of the Gauteng contract is expected to increase in the next few months, with production increasing and e-pay being added."
TCS adds it aims to introduce a more focused service-oriented approach to include robust back-office service solutions at Total Computer Services and Equipment Technologies Solutions. "These divisions will be equipped to operate as self-sustainable cost centres, providing services and creating new diverse market attraction to grow shareholder value for Total Client Services."
The listed company is also introducing new products, such as its re-engineered Artimas fixed Radar Camera, the TCS Capture mobile camera, handheld devices, new Windows-based traffic management system, the pound management system, and the on-board automatic number plate recognition systems.
"These products, together with other new innovations, will be launched over the coming months and are expected to play a significant role in the re-focused TCS."
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