GijimaAst has reported a pre-tax profit of R36.88 million and a net loss of R64.83 million for the year to 30 June.
The pre-tax profit compares with a prior-year loss of R125.26 million, while the group`s net loss is an improvement on the previous R141.66 million loss. The figures include two months` results of the businesses acquired from Gijima.
Revenue fell by 8.5% from R1.73 billion to R1.59 billion, which CEO John Miller says is the result of continued challenging market conditions.
"Market conditions have not changed significantly in the past six months and trading conditions continue to be challenging. While the anticipated improvement in demand is materialising in some sectors, others continue to lag.
"The demand for resourcing skills has again increased and this is an early indicator of better markets ahead. Large companies are also starting to replace the hardware infrastructure acquired in anticipation of Y2K (year 2000) at the end of 1999, which provides further evidence of increasing demand in the sector."
Cash and cash equivalents on the balance sheet amounted to R98.06 million at the end of the period, compared with R84.53 million before. Current assets of R553.87 million (2004: R404.88 million) compare with current liabilities of R498 million (R455 million).
Miller says the group`s restructuring has given it the flexibility to reposition itself as the market evolves.
"During the 2006 financial year, we will focus on leveraging the benefits of the recent merger. We will continue integrating the operations of Gijima and AST and further strengthen our sales capability. By maintaining the efficiency gains and increasing market share, we will deliver value to shareholders."
The results are being presented to analysts at the group`s head office in Centurion this afternoon. ITWeb will have a journalist present at the event.
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