Troubled Planit Technologies has restated its year-end financial results after a complete overhaul of the company`s books, remaining R163 million in the red. However, it is looking at incorporating failed Insys Business Solutions into operations.
Planit elected to restate year-ends to February after a hostile takeover in April saw the entire board ousted by disgruntled shareholders.
The new board, with Dale Packham at the helm, completed an overhaul of the books and operating control procedures.
The result, according to Packham, is a company that has come clean and is entering a phase of renewed growth and transparency.
Restated results show a R163.4 million loss for the year to February 2000, despite a R39.6 million turnover. There was an operating loss of R26.8 million for the year and a headline loss of 5.8c per share.
The new Planit board completed a due diligence on the company, which resulted in multiple write-offs on failed deals negotiated during the year. This meant an exceptional items figure of R139 million on the income statement.
A new development at Planit sees Brian Packham, non-executive director of Planit and brother of Planit CEO Dale Packham, shifting Insys Business Solutions` operations to the Planit head office.
Insys, headed by Brian Packham, closed its doors a month ago after it was unable to sustain profitability.
Subsequently, MetaLogix took over servicing Insys` SalesLogix clients on approval from SalesLogix`s international parent company Interact Commerce. MetaLogix also took four key Insys customer relationship management (CRM) staff.
Dale Packham confirmed that Insys` remaining staff members are operating out of Planit offices and that Planit is in negotiation with the company regarding a takeover deal.
"The natural fit between the companies is apparent, especially the CRM and ERP offerings to our thin client offerings. We are keen to incubate the business. We are also negotiating with Insys staff regarding the possible merger," says Dale Packham.
He says interim figures will show stability and the company returning to normal operations off a stable base. He adds that a possible equity partnership with ABSA is on the cards.
Planit shares were trading at 5c by 11.30am today, up 1c on yesterday`s 4c close.
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