Metropolis Transactive Holdings has reported a worse than anticipated net loss from operations of R43.7 million as a result of lower than expected revenue growth in the business-to-business and information management areas.
The group has also disposed of two divisions it deems to be outside its core business.
Metropolis, an Internet media and content company which focuses on e-commerce, has sold The Knowledge Factory, an informational processing company, to Primedia for R10 million cash.
Mead & McGrouther, which gathers and distributes vehicle and agricultural statistics and valuations, and sells financial services products and technical data to motor industry clients, was sold to Corporate Warranty Administrators for R13 million cash.
Metropolis said earlier this year, at the release of its interim results showing a R20.2 million loss and a headline loss of 19.1c a share, that it intends to focus on its core "dot-com" activities.
Since then it has sold its media businesses, Ornico, ACB and Adcheck.
The sale of The Knowledge Factory is subject to shareholder approval, while the Mead & McGrouther disposal is subject to Competition Commission sanction.
Revenue for the year to 30 June rose to R48.98 million (1999: R31.6 million), while a loss from operations increased from R7.4 million to R43.7 million.
A pre-tax loss of R77.98 million (R7.4 million) was recorded, and the group incurred a headline loss of 45.5c (7.1c) a share.
The balance sheet showed cash resources of R16.7 million (R64.8 million) at the year-end, with a net deficit per share of 5.6c (36.2c net asset value).
Metropolis has closed down its business-to-business operations. Provision has been made against the remaining assets and for the expected costs of closure.
On the positive side, iafrica.com represented more than 18.34% of the total South African online advertising market in calendar 1999, and the group is confident it can benefit from expected growth in online advertising.
The group believes it will break even by the end of 2003.
On the management front, CEO Jason Xenopoulos has been appointed executive chairman with immediate effect. Mike Braby has moved into the CEO position, while former chairman William Kirsh will remain on the board as a non-executive director.
The Metropolis share was trading 5c down at 50c by midmorning.
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