Zaptronix plans to delist

By Iain Scott, ITWeb group consulting editor

Johannesburg, 03 Feb 2003

Struggling e-business solutions developer Zaptronix plans to delist from the JSE and split into two companies.

Zaptronix has been in talks to sell its business. It says there is some outside interest in a repackaged business, especially one that separates the company`s two main activities - IT and electrical - into distinct vehicles.

<B>Salient figures</B>

Zaptronix results for the six months to 31 October 2002.
Year-earlier figures in parentheses:

Revenue: R1.28m (R6.61m)
Net operating loss before interest, depreciation and exceptional items: R2.48m (R4.46m)
Net loss before tax: R3.5m (R6.91m)
Net loss after tax: R2.95m (4.91m)
Net loss: R2.95m (R4.89m)
HEPS: -2.1c (-3.4c)
Current assets excluding cash: R1.6m (R4.39m)
Cash and equivalents: R1.08m (R5.79m)
Current liabilities: R963 000 (R3.26m)
NAV per share: 6.5c (25.8c)
NTAV per share: 3.7c (16.7c)

"Although there are a few serious contenders, no single contender is interested in both activities, nor in the listed vehicle itself," says CFO Jens Stratenwerth.

"An added complication is that at a share price of 1c and a market capitalisation of R1.45 million, it becomes extremely difficult to place a fair value on the intellectual properties owned by the company and even more difficult to realise it."

He says the company will soon approach its shareholders with a proposal to delist. The plan is to ask existing shareholders to remain as shareholders in two unlisted public companies with the same equity structure.

"Clearly, room would have to be made for a significant new shareholder to recapitalise each vehicle subsequent to delisting."

Zaptronix`s results for the six months to 31 October show turnover of R1.28 million, down 80.6% from the same period in 2001, although Stratenwerth points out that on a continuing operations basis, revenue was almost double that of the year to 30 April 2002.

A headline loss of 2.1c a share compares with a 3.4c loss for the six months to October 2001.

Stratenwerth says the business is now dependent on the conclusion of further contracts, the sale of intellectual property or the recapitalisation of the company.