Technology-based solutions group Contlan Holdings incurred a headline loss of 0.97c a share for the six months to end-August, which it attributes to market conditions, disruption caused by a disposal, and restructuring costs.
The group announced in August that it was to dispose of its infrastructure services division to the AST Group for R2.5 million cash, and shareholders approved the sale last month.
Termination benefits of R144 098 were provided for.
Turnover of R8.89 million for the six months to 31 August was 31.4% lower than the R12.96 million for the same six months last year.
Continuing operations accounted for R2.7 million turnover.
Gross profit from trading rose to R6.06 million (1999: R5.11 million), with continuing operations accounting for R2.53 million.
Deduction of expenses resulted in a pre-tax loss of R642 291 (R2.08 million profit), with a loss after tax of R685 518 (R1.46 million profit).
A headline loss of 0.97c a share compares with a previous earnings figure of 2.65c a share. The group`s net tangible asset value per share declined to 3.92c from 4.57c previously.
CEO Kerry Baris says the period was marked by negative and turbulent market conditions.
The disruption caused by the process, coupled with the cost of restructuring, resulted in the reported loss.
"With the sale of the infrastructure services division now complete, the directors are in a position to assess the future of the remaining operations in Contlan. Shareholders will be kept abreast of developments," Baris adds.
The Contlan share ended unchanged at 4c on the JSE yesterday.
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