IT services group Vesta Technology Holdings has achieved a turnaround, reporting positive headline earnings of 2.1c a share for the year to 31 August.
<B>Salient figures</B>
Vesta Technology Holdings results for the year to 31 August 2003.
Previous year`s figures in parentheses:
Revenue: R18.49m (R18.6m)
Results from operating activities: R1.28m (-R4.31m)
Profit before tax: R0.64m (-R19.06m)
Profit for the year: R1.17m (-R19.54m)
EPS: 1.4c (-23.1c)
HEPS: 2.1c (-5c)
Current assets: R2.69m (R2.52m)
Cash and equivalents: R71 000 (R47 000)
Current liabilities: R3.16m (R4.19m)
This compares with a headline loss of 5c a share the previous year. The improvement comes despite a marginal decline in revenue from R18.6 million to R18.49 million.
A year-end profit of R1.17 million compares with a previous loss of R19.54 million.
"The restructuring process embarked on 18 months ago is bearing fruit," says CEO Frederick Morrison. "Although the markets and trading conditions remained challenging, the team at Vesta demonstrated their commitment towards turning the corner and getting the group back into positive earnings."
He says the services business has grown and the group is pleased at its process in the local council arena. "Although the long-term potential for WebActive in the e-learning market is improving, it will still take a while for the potential to be realised and have a positive impact on the bottom line."
Morrison says the European-based revenue stream is also growing with the securing of accounts in the Netherlands.
"Vesta will continue to strive for sustainable long-term growth with annuity revenue streams. Focus will still be on expansion of existing operational areas including the local council market where the company is beginning to provide products and services."
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