Y3K has posted a small profit for the half-year to August and management expects the JSE-listed company will continue to trade profitably for the full financial year.
<B>Salient figures</B>
Y3K Group results for the six months to 31 August 2003.
Figures for the year-earlier period in parentheses.
Revenue: R5.21m (R5.31m)
Gross profit: R2.56m (R2.3m)
Operating profit before net finance charges: R89 000 (-R280 000)
Net profit after tax: R47 000 (-R402 000)
EPS and HEPS: 0.1c (-0.8c)
Current assets: R4.13m (R2.3m)
Bank and cash: R2.01m (R155 000)
Current liabilities: R5.31m (R5.63m)
Cash flows from operating activities: R994 000 (-R448 000)
NAV per share: 1.9c (0.9c)
NTAV per share: -1.8c (-5.4c)
However, CEO Ryan Price says the company remains dependent on its financiers and creditors to provide ongoing working capital for its business activities for the foreseeable future.
"If continued finance is not made available to the group, it may not be sustainable as a going concern. In this case, the realisable values of the assets may be less than the values reflected in the balance sheet."
On the positive side, Price says Internet security has featured prominently in the media in recent months and there is a tangible increase in awareness and demand for reliable and secure solutions.
"Y3K is in the position to offer these solutions to both the corporate sector as well as the home user," Price says.
The group achieved a net profit of R47 000 for the period, which compares with a loss of R402 000 for the same period a year earlier, and a headline profit of 0.1c a share, up from a loss of 0.8c a share previously.
Price says the 50% joint venture in a biometrics company did not meet its targets, although management believes the operation will be profitable in the near future. TheY3K`s Windows-based point-of-sale software was sold to a third party during the period.
"Y3K`s focus for the remainder of the year will be to increase its exposure to the medium and large corporate market as a provider of software security products and services," he says. "Y3K is confident that it has now built a reasonable foundation for growth."
The group also plans to increase its black economic empowerment shareholding in the current financial year.
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