Johannesburg, 08 Oct 2004
Bytes Technology Group (BTG) achieved headline earnings of 37c a share for the six months to August, up 48% from earnings of 25c a share for the same period a year earlier.
CEO Dave Redshaw says the group benefited from the positive effects of the acquisition of the remaining 50% shareholding in the Xerox operation and a turnaround in the UK operations, although the improvements in the UK continue to be slower than expected.
"In general, IT markets remain somewhat challenging, with the hoped-for upturn being slow to materialise. The relatively strong rand during the period under review continues to depress revenue levels and accordingly the 8% improvement in South African revenues is very satisfactory."
Total group revenue increased by 7% from R1.32 billion to R1.42 billion, while operating income before amortisation and capital items rose by 26% from R77 million to R97 million.
However, the group has impaired the carrying value of goodwill relating to its Plato operation in the UK by R100 million. This was in light of the continuing slower than expected rate of improvement in the operation`s results.
Goodwill amortisation and the impairment totalled R167 million, leading to an attributable loss of R84 million, compared with a year-earlier loss of R28 million, and a basic loss of 54c a share, compared with a 19c a share loss previously.
Commenting on the planned acquisition of CS Holdings, Redshaw says it is hoped that the deal will be concluded by the end of October.
"The recent publication of CS Holdings` results for the year to June 2004 reflects a number of extraordinary and once-off charges necessitated by certain events which have plagued that company in the recent past," he says.
However, he adds that the BTG board is satisfied that the CSH business is sustainable under normal operating conditions and expects that the deal will generate benefits for the group.
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