Renamed Usko to form core of Altron`s IT focus

By Staff Reporter for Bytes Technology Group
Johannesburg, 13 Oct 2000

JSE-listed Usko is to change its name and is set to become the core company in the Altron group`s IT strategy.

Announcing the company`s financial results for the six months to 31 August, executive chairman David Redshaw said the name change to Bytes Technology Group would take effect once the necessary formalities were completed.

Redshaw says the name change, in addition to a restructuring process, management changes and the restoration of customer confidence, is a further step towards repositioning the company as a major IT player.

Usko reported turnover of R364.4 million for the six months to August.

Redshaw says a realistic comparison with previous results is difficult or impossible considering the substantial changes at the group as well as a change of year-end from September to February.

An operating loss of R41.94 million before goodwill amortisation (R3.86 million) and exceptional items (R5.16 million) was recorded.

An after-tax loss of R68.51 million and an attributable loss of R64.53 million resulted in a headline loss per share of 10.81c and a fully diluted headline loss per share of 7.46c.

Interest-bearing debt increased to R148 million from R103 million six months earlier.

A rights issue was undertaken towards the end of the period, which resulted in the conversion of an ordinary shareholders` deficit of R108 million into a positive balance of R120 million.

Redshaw says a strategic review completed during the six months will ensure, before the end of this financial year, a leaner organisation with improved competencies.

"Despite a poor first half, the directors are reasonably confident, given the considerable amount of restructuring effort which has been devoted to the group, that the second half will show a material improvement over the results for the first half."

He adds that an increasing order book in all the group`s operations demonstrates an improving level of market confidence.

Talks which will result in Usko becoming the core of Altron`s IT strategy are at an advanced stage.