Y3K Group has reported a net profit of R1.53 million for the six months to end-August, up from R47 000 the same period a year before.
The results incorporate the acquisitions of Information Security Architects and iSecure with effect from 1 March. The companies, both operating as information security solutions providers, were acquired earlier this year by Y3K subsidiary Y3K Security Products.
Y3K director Clifford Katz says while the acquisitions have yet to be approved formally in a shareholders` meeting, most shareholders have given irrevocable undertakings to vote in favour of the acquisitions and the relevant issue of new shares.
He adds that Y3K Security Products, Information Security Architects and iSecure will trade under the name Information Security Architects, and Y3K Group will change its name to ISA. The group`s listing is to be transferred to the JSE`s alternative exchange, AltX.
Revenue for the six months rose from R5.21 million to R14.62 million, while headline earnings per share of 1.8c compare with year earlier earnings of 0.1c a share. At the end of the period, the group recorded a net asset value of 9.8c a share, from 1.9c previously.
A net tangible asset value of negative 1.8c a share was turned into a positive 4.3c a share.
The balance sheet also looks healthier, with current assets of R6.57 million against current liabilities of R2.97 million, translating into a current ratio of 2.22. This compares with a current ratio of 0.78 previously.
Katz says the results are in line with budgets. "It is anticipated that the group will achieve its targeted profits for the full financial year, generate positive cash flow and declare a dividend for the year."
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