JSE-listed Prada Technologies has incurred a consolidated loss of R10.79 million for the year to 30 June, mainly as a result of writing off its Brainiack project.
The project related to the development of a pay-for-play game system.
Chairman Anton Hay says the group decided to write off the project "due to local licence authorities, constant changing of software and other participants in this market, together with high cost of further development".
Hay says the company performed satisfactorily despite adverse economic conditions and declining international confidence resulting from instability in neighbouring countries, as well as difficulties experienced by African countries further north.
"The group is of the opinion that its initiatives are very suitable for the southern African regions and has placed its focus outside the borders of SA where communication systems are poor and the group can offer affordable communication systems in various markets.
"Although management is satisfied with the margin achieved, difficult circumstances and work environment hampers fast progress and contracts tend to take much longer than initially planned for."
He adds that the group is confident that the current momentum can be maintained and increased in the next financial year.
Hay says that as with all companies in the JSE`s venture capital sector, PradaTech will have to continue to consolidate its position in the marketplace for a substantial period before gaining the investment confidence of local institutions.
"In this difficult environment, we are continuing to focus on reducing costs and are examining ways of further improving the efficiency and effectiveness of our business."
While the group is confident that it will continue to expand its share of the wireless communications systems market, it says other avenues of business should also be investigated.
Hay says litigation to recover cash paid for the cancelled acquisition of Brainware MITS is continuing.
The company announced in September last year that the acquisition had been cancelled and it had instituted legal proceedings to recover R6 million.
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