Vesta Technology Holdings has reported an 83.9% slump in headline earnings per share and a net loss for its financial year to 31 August 2001.
"The trading conditions of the previous 12 months had a major impact on Vesta`s business, says group CEO Frederick Morrison.
<B>Figures at a glance</B>
Vesta Technology Holdings results for the year to 31 August 2001
Previous year`s figures in parentheses:
Revenue (continuing operations): R31.37m (R36.54m)
Gross profit: R22.32m (R24.71m)
Other operating expenses: R24.67m (R15.86m)
Net profit: -R11.41m (R10.53m)
HEPS: 2.2c (13.7c)
"It happened at a time where focus was on getting products to market, which resulted to an increase in operational expenditure. Clients` longer decision-making cycles caused a slower sales fulfilment and impacted Vesta`s projections.
He adds that Vesta invested in an initiative to increase its sales.
"Our own products are mature and allow for a more aggressive marketing drive. The change in our sales focus is already paying off, and we are confident that our trading position will change dramatically this year."
The group discontinued the special purpose vehicle (SPV), Vesta Software Solutions (UK), resulting in a loss on discontinued operations of R9.65 million.
"Although the SPV had no operational impact on Vesta it could not fulfil the financial return that was planned."
Morrison says the dramatic increase in operational expenditure is as a result of the increased amortisation of goodwill in the Fund Mator acquisition, as well as the Fund Mator Group`s expenses which were included for only two months in the prior year, and were consolidated for 12 months in the current year.
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