Beget Holdings` net asset value has gone into negative territory despite the company having reduced its losses for the year to December 2004.
The SMS-focused company`s gross revenue rose by 61.98% from R4.26 million in 2003 to R6.89 million. The loss before tax has improved from R14.3 million to R2.99 million, due to the absence of last year`s impairment loss of R15.68 million.
Current liabilities at the year-end were R5.13 million against current assets of R2.19 million. The previous year`s balance sheet showed current liabilities of R3.13 million and current assets of R1.65 million.
The headline loss per share improved from 1.17c to 0.53c. However, the group recorded a negative net asset value per share of 0.26c, compared with a positive 0.57c a share the previous year.
MD Andre Potgieter says that during the year Beget redirected its focus to the in-house development and roll-out of world-rated products including MobileBIO, MobilePOS, SMSOS and GPRS modems. An agreement has been concluded with Beacham to fund the rollout of R1 million of MobileBIO stock.
Beget also concluded an agreement to issue options to Beacham to subscribe for up to 200 000 ordinary shares over the next four years, for up to R22.8 million.
Beget`s share was trading at 8c at 11am, down 1c or 11.1% from yesterday`s close. By late morning, 88 334 shares had changed hands.
"If you want to do a proper analysis of this company you`d have to go and look at the products they are so proud of," an analyst comments. "But based on the information in the market - the historical results - I wouldn`t touch it. It looks terrible."
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