AST Group reduced its headline loss to 8.56c a share for the year to August, compared with a loss of 101.49c a share for the previous year.
CEO John Miller says this has been a watershed year for the group.
"We embarked on an intensive remake of our business which has resulted in a leaner, more efficient and more competitive operation," he says.
The group has also announced that it has reached an agreement that will see black-owned ICT company Gijima Info Technologies Afrika reverse some of its IT assets into AST for the issue of new shares, resulting in Gijima owning at least 30% of the merged entity.
Full details will be disclosed as soon as possible, Miller says.
Revenue declined from R2.21 billion to R1.73 billion, while earnings before interest, tax, depreciation, amortisation, impairment and sale of business rose from R0.39 million to R105.29 million.
The group achieved a profit of R21.16 million from operations before amortisation, compared with a prior-year loss of R84.99 million. A loss of R80.74 million from operations after amortisation was an improvement on the previous year`s R232.48 million loss.
A net loss of R140.75 million compares with a previous loss of R227.48 million.
The balance sheet has also improved, with a current ratio of 0.9 compared with 0.7 previously.
Miller says the group completed its "business improvement programme" on time, although most of the benefits will be evident only in the year to June 2005 and onwards.
"To date, we have implemented cost savings that, on a comparable basis, exceeded R20 million per month for the first time in August 2004. Annualised cost savings will exceed R300 million.
"We reduced our headcount by 16.5% since March 2003, to just over 3 000, without compromising our ability to service our clients."
He says the group is now implementing a follow-up "continuous improvement programme" to ensure the performance improvements will be sustainable.
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