Labat Africa`s restructuring programme is beginning to pay off, with the group reporting a pre-tax profit for the year to February.
Chairman Brian van Rooyen says the restructuring and disposal process is almost complete, leaving Labat with just two main businesses - electronic traffic enforcement solutions provider Labat Traffic Solutions and integrated circuit producer SAMES.
Van Rooyen says Labat Traffic Solutions has continued to record "excellent" year-on-year growth and that talks are at an advanced stage with various municipalities.
SAMES, he adds, is back on track, almost at breakeven and projecting profits for next year.
"Labat is now well on the way to a substantial recovery and is projecting profits for the year ahead," Van Rooyen says.
The group`s revenue for the year to February fell from R193.87 million to R156.06 million as a result of the disposal of non-core businesses. Revenue from continuing operations rose from R130.81 million to R144.9 million.
Operating profit
An operating profit of R22.77 million before interest and tax compares with a previous loss of R26.02 million, while on a continuing operations basis the R22.42 million profit compares with a R17.42 million loss previously.
The group achieved a pre-tax profit of R9.73 million, a turnaround from the R62.63 million loss for the year before.
A R3.1 million attributable loss compares with a prior-year loss of R58.52 million, translating into a basic loss of 10.3c a share. The group incurred a loss of 34.1c per share the previous year.
Labat`s headline loss of 6.3c a share compares with a previous 19.3c headline loss per share.
"The most significant change to the balance sheet during the past year has been the total turnaround in the group`s cash position," says Van Rooyen.
"Bank overdrafts and instalment sale finance have been reduced from R64.88 million to R5 000. Group cash resources have increased by R9.1 million from R3.3 million to R12.4 million."
The Labat share was untraded at 14c on the JSE yesterday.
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