IT services group Vesta Technology Holdings has reported a 68% decline in its profit for the six months to end-February.
Revenue of R8.68 million was 8.6% lower than the R9.5 million of the same period a year before. Despite the drop in revenue, gross margins were slightly higher, with gross profit of R6.17 million compared with a previous R6.07 million.
A profit of R0.14 million compares with a previous R0.42 million profit, while headline earnings of 0.2c a share were 60% lower than the 0.5c earnings a share of the year-earlier period.
Chairman and CEO Frederick Morrison attributes the decline to decreased foreign exchange profits and the fact that tax was provided for in the period, while there was no provision the year before.
On the balance sheet, current liabilities exceed current assets by R61 151. This is an improvement over the year earlier, when current liabilities exceeded current assets by R1.31 million.
"The board of directors has satisfied itself that the group has adequate revenue, a budget for the current year reflecting a net profit and a cash flow forecast, which indicates that the group will be able to honour all its liabilities in the normal course of business," Morrison says.
"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."
The Vesta share price was unchanged at 4c on the JSE this morning.
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