Information and communications technology group Spescom incurred a headline loss of 111.5c a share for the 12 months to September, despite turning in a profit for the second half of its financial year.
<B>Salient figures</B>
Spescom results for the year to 30 September 2002.
Previous year's figures in parentheses:
Turnover: R366.24m (R489.39m)
Operating profit: -R57.78m (R28.3m)
Net profit before abnormal items: -R70.75m (R18.11m)
Net profit after tax: -R84.75m (R25.43m)
Profit for the year: -R85.05m (R25.41m)
HEPS: -111.5c (31.9c)
EPS: -146.1c (45.7c)
Current assets: R146.21m (R206.25m)
Cash resources: R44.04m (R46.93m)
Current liabilities: R287.92 (R253.7m)
Cash generated by operations: -R55.25m (R57m)
Executive chairman Tony Farah says the year was characterised by unexpected and unpredictable occurrences, which had a negative effect on world markets and trading conditions.
"Spescom's most notable outcome of this tough period is the emergence of the Spescom Group as truly international with a Nasdaq listing, operations in the US, UK and SA, and channels to market throughout the world."
A R3.6 million headline profit in the second half of the year was not enough to counter the R68.5 million headline loss reported at the interim stage, although Farah says the positive trend of the second half is expected to continue into the new financial year.
The South African operations have been consolidated and are expected to be profitable in the new year.
Spescom derives 69% of its turnover from Africa, while Europe accounts for 20% and the US 11%.
The e-business operations, which contributed R159.14 million or 43% of turnover, incurred an operating loss of R57.76 million. Communications contributed R114.97 million turnover and incurred a R16.61 million operating loss.
Services and other operations achieved an operating profit of R16.59 million on turnover of R92.13 million.
Overall, the group incurred an operating loss of R57.78 million, compared with a previous profit of R28.3 million.
Spescom's global expansion was mainly financed through direct debt amounting to $8 million at what Farah says are low international interest rates.
"This has resulted in strategic businesses for the Spescom Group which are well positioned to generate revenue in excess of $25 million during the coming financial year.
"Reducing or restructuring the debt remains a priority and in this regard the Spescom Group is exploring a number of initiatives designed to unlock the value inherent in its offshore operations."
He says the aim is for these actions to lead to raising capital through the sale of equity and to repositioning the group's operations in joint ventures with strategic global industry players.
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