Vesta Technology, the JSE-listed software and services company, has reported a headline loss of R341 000 for the year to August 2001.
This compares with a headline earning of R11.6 million for the year 2000. Revenue for the period was also down from R65.5 million to R31.5 million.
However, Vesta CEO Frederick Morrison says the 2000 revenue included a once-off figure of R33.6 million from the discontinued British Virgin Isles company VSS.
On a comparable basis, excluding the once-off revenue, Morrison says annual revenue is only down 10% year on year.
Vesta`s decision to terminate the agreement to acquire the Fund Mator Group contributed to the negative results to the tune of R4.2 million, while the discontinuation of VSS amounted to R9.6 million.
The decision to cancel the acquisition agreement was taken in an effort to lower the group`s exposure to additional risk.
Morrison says the group decided to take the knock in this set of results, and is now firmly on track and getting back to basics.
"The company`s attention has been diverted during the period. We are now getting back to basics and with focus now firmly on profitability, we believe we will be out of this position by the end of the year," says Morrison.
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