Spescom optimistic despite loss

Despite reporting a bottom line loss, JSE-listed Spescom says things are looking up for the enterprise content management company.

The company this morning reported a loss after tax of R15.7 million, compared to a net profit of R5.9 million in the previous year, but says its trading position improved in the second half of the year.

CFO Jene Palmer points out the company's net loss in the first half of the year was R9.5 million, but this narrowed in the second half to a R7.7 million loss.

The company was also hit by a R4 million foreign exchange loss but has taken steps to restructure its balance sheet, pay back some debt and reduce its future exposure to currency fluctuations.

In the first half of the year, it saw a loss from operations of R8 million, which reversed in the second half of the year and resulted in a R500 000 profit, indicating an "improved trading position", said a statement.

This improved operational performance is attributed to "improved performance across all divisions and in particular, growth in the call centre market," the company said.

Spescom's revenue, which came in at R220 million, down from last year, was lower as a result of its sale of the local eB software division, and the unpredictable nature of the telecommunications industry, says Palmer.

"Deregulation has, during the period under review, done little to drive dynamic decision making processes or enhanced spending on technology requirements," she says. However, she is optimistic that Neotel will change this picture.

Looking forward, Palmer is confident of the group's prospects in the call centre arena as the demand for customer contact and telephony solutions continues to increase.

"This is particularly pertinent in Africa, where nations are focusing on implementing modern communication systems on the back of government awareness of global competition."

Next year, the company's 30^th birthday, is expected to show improved results as it hopes to see its media division benefit from the 2010 Soccer World Cup. In addition, it hopes to benefit from increased activity in the telecommunications market.

The market reacted negatively to the company's year-end results announcement. Its shares, which yesterday closed at 85c, were trading 4.71% down at 81c just after 10:30am.

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