Planit Technology Holdings, IT and Internet solutions group, suffered a R161.9 million loss for the year to 29 February, which it blames on the failed spin-off of the Orbes listing, internal politics, management turmoil and high overheads.
A headline loss of 35.66c a share compares with a restated earnings figure of 1.93c in the previous financial year.
Revenue fell 46% to R39 million from a restated R85.5 million previously. CEO and MD Dale Packham attributes the lower figure to the disposal of various non-core assets during the year.
An operating loss of R31.8 million compares with a restated R5.8 million profit the year earlier. The loss includes depreciation of R6.8 million.
The entire Planit board was ousted in April by disgruntled shareholders who called a general meeting with the express purpose of voting the directors out after dissatisfaction with a plunge in the company`s market capitalisation.
"The board is satisfied that substantial progress has been achieved since the 4 April meeting and taking into consideration the history, the group has emerged remarkably unscathed," says Packham.
He adds that proper reporting procedures have been implemented and scheduled discussions on internal synergies and forward strategy are underway.
Exceptional items on the income statement amounted to R130.8 million. This included a R61.4 million write-off relating to the investment in Megasub Holdings, vendor penalty debts of R20 million relating to the failed Orbes listing, as well as loan write-offs.
Net tangible asset value increased to 1c a share from a restated negative 6c.
Packham remains confident of a turnaround, although he admits this will not be overnight.
Very little seed capital is required to steer the group to profitability, he adds.
"Overheads have been reduced by R400 000 per month and this, together with the roll-out of four recently commissioned 'thin client` applications by South African Business Exchange, will have a material effect on the group`s profitability.
"Despite some extensive write-offs in exceptional items and intangibles, the group remains solvent, and the board is confident that this exercise will set the precedent for transparency and good corporate governance, resulting in renewed confident in management and the group`s future."
The share was unchanged at 5c by midmorning today.
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