Vesta takes a knock

By Iain Scott, ITWeb group consulting editor

Johannesburg, 26 Nov 2004

Vesta Technology Holdings has warned that its results for the year to 31 August will show a net loss.

According to a trading update issued this morning, the group will report positive headline earnings, although these will be 70% down on earnings for the previous financial year.

Vesta managed to post a profit for the six months to end-February, although the R0.14 million figure was still 68% lower than the R0.42 million for the same period a year earlier.

Headline earnings at the interim stage came in at 0.2c, 60% down on the 0.5c of the prior-year period.

At the time, chairman and CEO Frederick Morrison attributed the decline to decreased foreign exchange profits and the fact that tax was provided for in the period, while there was no provision the year before.

The company has not provided any further details on the full-year results, but it has warned shareholders to exercise caution when dealing in their shares until the results are announced.

This is expected to take place on Tuesday.

Vesta only recently returned to profitability. The group reported a profit of R1.17 million for the year to August 2003, after a loss of R19.54 million the previous year.

The profit was achieved after a restructuring programme that began 18 months before.