Zaptronix has reported a headline loss of 1.27c a share for the year to end-April 2004, an improvement on the previous year`s 4.5c loss per share.
Revenue increased from R2.24 million to R3.16 million, while the operating loss of R2.4 million compared favourably with a previous loss of R11.35 million.
Chairman Karl Gribnitz says the financial results reflect the group`s ongoing restructuring.
"Management has further optimised operational efficiencies by contracting out most support activities," he says.
"A service agreement was entered into with DuO Solutions Provider for most of the administrative and financial functions, allowing the Zaptronix core team to concentrate on the roll-out and implementation of its revisited strategy."
Last month Zaptronix announced a reverse takeover in terms of which an issue of shares to acquire DuO would result in DuO owning 81% of Zaptronix.
Gribnitz says the extent to which the turnaround in the business is taking effect is evident in the fact that operational cash outflows reduced to a tenth of the previous year`s outflow of R3.3 million.
However, the net asset value fell from 1.6c a share to just 0.1c a share, while the net tangible asset value, excluding capitalised development costs, fell from a positive 0.5c a share to a negative 0.3c a share.
"The end of the April 2004 reporting period marks a watershed for the company, operating at break-even levels with most strategic initiatives in place and the proposed reverse acquisition of DuO on the horizon," Gribnitz says.
He adds that the board is confident the DuO deal and the strategic initiatives of the combined entity should see a significant improvement in the financial and trading position by the end of the current financial year.
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