AST Group incurred a headline loss of 10.15c a share for the year to 30 June, compared with earnings of 20.08c the previous year.
<B>Salient figures</B>
AST Group results for the year to 30 June 2003.
Previous year`s figures in parentheses:
Revenue: R2.21b (R2.22b)
EBITDA: R129.14m (R194.77m)
Operating income: -R232.48m (-R14.55m)
Profit before tax: -R292.97m (-R20.6m)
Net profit: -R227.48m (-R54.88m)
HEPS: -10.15c (20.08c)
EPS: -37.1c (-9.79c)
Current assets: R537.28m (R573.87m)
Cash and equivalents: R70.72m (R134.34m)
Current liabilities: R728.32m (R653.63m)
NAV per share: 18.46c (58.48c)
Cash generated from operations: R50.85m (R252.95m)
CEO John Miller says AST incurred substantial one-off costs to reduce balance sheet risk and to scale down cost structures.
"These write-offs combined with high interest costs and substantial increases in gearing have had a negative impact," he says.
Miller says the first phase of the group`s business improvement programme, aimed at an annualised cost saving of more than R200 million, is in the implementation stage.
"Full realisation of the cost savings will, however, only be visible in the financial year to June 2005, as upfront costs associated with implementing the business improvement programme will be absorbed during the 2004 financial year."
Miller says AST`s core businesses are delivering "consistent and commendable" results, although these results are mostly negated by the overhead and management cost structures.
A fully underwritten rights offer for at least R88.75 million is to be completed by 7 October, the proceeds of which will be used to reduce debt levels.
The AST share price was unchanged at 15c on the JSE this morning.
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