Restructured Bytes reports headline profit

By Iain Scott for Bytes Technology Group
Johannesburg, 27 Sep 2001

The restructured Bytes Technology Group has reported headline earnings of 14.26c a share for the six months to 31 August 2001, compared with a 324.3c loss per share for the same period last year.

Executive chairman David Redshaw says that despite the ongoing challenging market conditions and global IT industry downturn, the group met expectations with pleasing performances from the original Usko IT operations and former Fintech Group companies.

"Bearing in mind that the period under review continued to bear significant costs of a non-recurring nature emanating from the restructuring and rationalisation process, the performance is acceptable and augurs well for an improved second half."

Redshaw says the group made good progress in returning most of the original Usko IT operations to either profitability or a break-even position. He adds that the turnaround at Mediswitch and the enterprise solutions business in the UK are particularly pleasing.

"National Data Systems had an excellent first half but is anticipated to produce lower profits in the second half due to a relatively higher mix of orders and billing in the first six months."

However, he adds that a satisfactory performance is envisaged for the full year.

Redshaw says the group expects to show further improvement in the second half, despite continuing difficult trading conditions.

"However, this should be seen against the potential effect that the recent tragedy in the US may have on global economies," he adds.

The Bytes Technology Group share was trading 10c or 3.23% up at 320c on the JSE by late this afternoon.