Y3K Group managed to post a small profit for the year to February, but has warned that it depends on the support of its financiers and creditors to continue as a going concern.
<B>Salient figures</B>
Y3K Group results for the year to 28 February 2003,
Previous year`s figures in parentheses:
Revenue: R11.2m (R16.08m)
Operating profit before exceptionals and funding costs: R0.34m (-R1.61m)
Net profit after tax: R0.09m (-R2.23m)
HEPS: 0.2c (-3.8c)
NAV per share: 1.8c (1.6c)
NTAV per share: -3.2c (-5.9c)
Current assets: R2.82m (R2.77m)
Bank and cash: R1m (R0.7m)
Current liabilities: R4.8m (R6.41m)
Cash flows from operating activities: R0.36m (R1.67m)
Total revenue slipped from R16.08 million to R11.2 million for the year, although it was flat on a continuing operations basis.
The group, a provider of digital information security products and services, turned in an operating profit of R339 000 before exceptional items and funding costs, compared with a year-earlier loss of R1.61 million.
A net profit of R86 000 compares with a previous loss of R2.23 million.
CEO Ryan Price says the Windows-based point-of-sale software division missed its targets and sales were below budget.
He says the return to "modest profitability" has helped restore the confidence of clients, principals and staff.
However, the group is not yet out of the woods. "Y3K remains dependent on its financiers and creditors to provide ongoing working capital for its business activities for the foreseeable future," he says.
"If continued finance is not made available to the group, then it may not be sustainable as a going concern for the foreseeable future, in which case the realisable values of the assets may be less than the values reflected in the balance sheet."
Current liabilities on the balance sheet outweighed current assets by R1.97 million at the year-end.
In addition to a implementing a restructuring process, Y3K has improved its black economic empowerment profile, with 50% of its directorship thus represented. It is also planning to increase its empowerment shareholding to 36% by the end of the current financial year.
It has also added to its product range through a 50% joint venture in a biometrics company specialising in logical and physical access control systems.
Price says management expects to achieve a trading profit for the current financial year despite difficulties in the IT trading environment.
Strategies are in place to grow the company on the basis of a conservative and focused expansion plan in future," he says.
The Y3K lost 3c to trade at 1c by midmorning today.
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