JSE-listed Zaptronix has reported a R37 000 after-tax profit for the year to 30 April, sustaining the turnaround it reported when it released its interim results in February.
Revenue for the full year slipped from R3.16 million to R2.1 million, although the group achieved a R21 000 operating profit, versus a loss of R2.39 million previously. Pre-tax income of R49 000 compares with a previous R2.63 million loss.
The group`s balance sheet is also stronger, with a current ratio of 1.8 compared with 0.6 a year before. Although the net asset value has improved from 0.09c a share to 0.14c, the group has a net tangible asset value of -0.08c a share against -0.25c previously.
CEO Jan Nel says the results reflect mainly the improvement in the original core business - the sale of electricity metering products.
"The gross profit margin of 61% for the 12 months to April 2005 from 77% during the six months to October 2004 represents a return to more normal levels following the sale of distributor rights of automated meter reading in the earlier period.
"The improved gross profit margin in the current 12 months to April 2005 relative to the previous financial year to April 2004 (47%) is attributable to higher-margin software development services provided by the company."
He adds that management has identified target markets for the company`s metering solutions, with an emphasis on converting these into annuity contracts over periods of six months to three years.
"The next 12 to 18 months should begin to reflect the benefits of this growth opportunity and, as the base earnings increase over time, the impact on the company`s results should become increasingly evident."
The Zaptronix share, which closed 1c down at 19c on the JSE yesterday, was untraded by midmorning today.
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