Cost containment and new revenue sources helped online broker and financial services company Tradek to a profitable fourth quarter, but the measures were too late to prevent an overall loss for its latest full year.
Figures at a glance
Tradek results for the year to 31 March 2001
Current year, with comparative previous period in parentheses:
Revenue: R28.32m (R18.54m)
Profit after tax: -R4.97m (R2.28m)
HEPS: -3.75c (2.31c)
Cash flow from operating activities: -R12.02m (-R4.15m)
Although revenue for the year to 31 March 2001 was 53% up on the previous year, CEO Paul Theron says JSE trading activity during the year was depressed, resulting in lower levels of trading by private clients.
Market turnover has generally been lacklustre, he adds.
"The full integration of Tradek`s various business acquisitions is complete, including the merger of the respective client bases and the consolidation of the back office operations.
"The result is significant cost containment and increased efficiencies from which we anticipate a benefit in the coming year."
The client base is also growing, with more than 500 new clients being added each month via the Tradek Web site.
A Tradek-branded gold Mastercard will soon be added to the product.
"Tradek now has a diversified revenue base," says Theron. "However, equity trading remains our most significant revenue contributor and, accordingly, market trading levels will continue to affect our fortunes in the year ahead.
He adds that the board remains positive about the company`s prospects.
The Tradek share price was unchanged at 17c on the JSE this morning.
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