DigiCore, which provides telematrics and vehicle-tracking services, has reported a net loss of R52 million, after failing to react quickly enough in Europe.
This full-year loss, for the period to June, follows a R57.5 million impairment of its European business. DigiCore was founded in 1985, listed on the JSE in 1998, and has 1 200 staff in 56 countries.
In an announcement to shareholders, it says its results for the year "reflect the most difficult period since the group's listing". It has been through a consolidation process, including shutting its Mexico office.
DigiCore says it completed business development initiatives in Asia without immediate returns, a situation that also applied to development costs in the UK insurance market. CEO Nick Vlok says, however, the investment in the UK insurance industry is now starting to pay off.
Its full-year revenue came in at R862 million, a gain on last year's R844.4 million. A year ago, it reported a net profit of R30 million.
The company also saw R7.5 million less revenue as connection incentive bonuses from cellphone companies stopped being paid. It says, however, that a new model with lower monthly subscriptions will have a greater positive effect long-term.
It made a loss per share of 21.7c compared to a 12.7c gain last year. Headline earnings per share, seen as a key indicator of performance, lost 74% to come in at 3c, compared with 12.7c.
Headline earnings per share were adjusted to strip out the impairment and the R1 million loss on its 50.1% stake in Worldmark SA, which it divested from for R7 million in January. Also stripped out was a R1.8 million loss on property, plant and equipment.
DigiCore boosted unit sales and held its gross profit margins, while keeping costs under control. It has also changed its deal with Discovery Insure, its biggest customer, which will aid cash flow, it says.
The company has also implemented tighter control of debtors, and will focus on capital and operating costs to make sure there is no wastage. "Sales and marketing strategies have been implemented to improve turnover for the next year," it says.
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