Zaptronix says it expects to reverse its previous loss for the year to August, thanks to the inclusion of earnings from a business it is buying out.
Zaptronix, which offers tracking, energy and metering solutions, says the reversal of its previous loss position is mostly due to earnings from I-to I-Technology Solutions, which it is in the process of acquiring.
In September, the company said it was buying I-to I-Technology Solutions for R6.6 million, and will issue 440 million shares to pay for the acquisition. Zaptronix has been running the company since March and is entitled to I-to-I's net profit between March and the end of August this year.
Zaptronix has been running at a loss for at least the last three reporting periods. In its most recent results, for the half-year to February, Zaptronix reported a slight decline in revenue, at R9.1 million - down from R9.996 million. However, the company widened its loss, from R968 442 to R1.8 million, during the period.
However, thanks to I-to-I, Zaptronix is expected to show basic earnings and headline earnings per share of between 0.45c and 0.55c, compared to a basic and headline loss per share loss of 0.68 cents for last year.
I-to-I provides CCTV surveillance, access control, fire detection and electronic article surveillance infrastructure and systems for business operational use.
The increase in Zaptronix's earnings is mainly a result of the inclusion of the earnings of I-to-I between March and August. However, future earnings from the business will only continue if the suspensive conditions of the transaction are met.
Zaptronix also benefited from recently awarded contracts from blue chip clients, amounting to R5 million, in its site risk solutions division.
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Zaptronix buys I-to-I
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