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Zaptronix closer to profitability

By Iain Scott, ITWeb group consulting editor
Johannesburg, 02 Feb 2004

Zaptronix, the technology firm taken over by restructuring specialist Gandalf Trust, has improved its after-tax loss from R2.95 million to just R244 000 in the six months to October 2003.

<B>Salient figures</B>

Zaptronix`s results for the six months to 31 October 2003.
Figures for the prior-year period in parentheses.
Revenue: R1.56m (R1.28m)
Operating profit before interest, depreciation and exceptional items: -R0.18m (-R2.48m)
Net profit before tax: -R0.24m (-R3.5m)
Headline profit: -R0.24m (-R3.01m)
HEPS: -0.2c (-2.1c)
EPS: -0.2c (2c)
Current assets: R0.67m (R3.97m)
Cash and equivalents: R0.16m (R1.08m)
Current liabilities: R0.77m (R0.96m)
NAV per share: 1.4c (6.5c)
NTAV per share: 0.3c (3.7c)

Gandalf Trust took control of the company in August last year with the stated intention of unlocking value for shareholders.

"As a result of the decision to focus on the metering solutions aspect of the business, the group is able to report both a 73% decrease in overheads and a 21% increase in revenue generated relative to the comparable six months of 2002," says director Karl Gribnitz.

"The refocusing of the business also resulted in a dramatic improvement in the cash flow position for the period."

Gribnitz says the board has investigated various opportunities and that negotiations with a potential have reached an advanced stage.

Last week Gandalf`s Jan Nel said there were plans to move Zaptronix to the JSE`s AltX board from the soon to be defunct venture capital market (VCM). He said the company should be ready for an AltX listing before the VCM`s closure.

Related stories:
Mixed reaction to markets` closure
Change of control at Zaptronix
Net loss for Zaptronix

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