Labat Africa, chaired by rugby boss Brian van Rooyen, has reported an after-tax profit of R14.37 million for the six months to August, compared with a R5.8 million loss for the prior-year period.
This is despite a 14.7% drop in revenue from R97.34 million to R83.02 million.
Van Rooyen says the group "looks set to continue generating good profits and cashflow for the second half of the year and into 2006".
The group is in the midst of a restructuring exercise that Van Rooyen says will be finalised early in the new year and leave Labat with just two core businesses - SAMES and Labat Traffic Solutions.
He says the entire interest-bearing overdraft debt owned by Labat, Labat Africa Management Consulting and SAMES has been settled in full.
Van Rooyen says SAMES is back on track and is almost at breakeven. The business is projecting profits for 2007.
"Labat Traffic Solutions continues to record excellent year-on-year growth in revenue and profit and continues to grow its technology base and business," he adds.
For the period under review, Labat achieved operating income of R34.22 million before depreciation and amortisation, compared with R5.52 million for the year-earlier period.
A pre-tax profit of R22.44 million compares with a prior-year loss of R9.76 million while headline earnings of 1.7c a share is a turnaround from a loss of 5.9c a share previously. The group achieved basic earnings per share of 3c, compared with a 4.7c a share loss.
The balance sheet shows current assets of R88.05 million (2004: R155.8 million), of which R10.41 million (R10.72 million) was cash, against current liabilities of R74.72 million (R117.07 million).
The group had a net asset value of 40.9c (66.1c) a share at the end of the period, and a tangible net asset value of 23.7c (52.3c) a share.
The Labat share was trading at 18c on the JSE early this morning, up 1c or 5.9% from yesterday`s close.
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