Vesta anticipates a turnaround

By Iain Scott, ITWeb group consulting editor

Johannesburg, 28 Nov 2002

IT services and solutions group Vesta Technology Holdings expects a return to profitability in the next year.

The group incurred a headline loss of 5.4c for the year to 31 August, compared with a 0.8c loss the previous year.

The previous year`s results have been restated because the balance of deferred tax was overstated by R353.53 million.

CE Frederick Morrison says a rationalisation process has resulted in a more focused group.

"The different areas within the group are responding well to the changes and the group is in a positive operational position. This has resulted in revenue growth of 17.4%, savings on staff costs of 20% and savings of 17% on normal operating expenses in the past six months, compared with the first six months."

He says the group has streamlined each main operational area and has defined marketing strategies aimed at optimising opportunities and expanding its markets.

"With the cost-cutting exercises and the focus on expansion of existing operational areas, the group intends returning to profitable operations in the next 12 months."