Usko has published year-ends in line with the profit warning in February, posting a pre-tax loss of R149.3 million.
A loss per share of 33 cents was reported for the 17 months to February, on a turnover of R1.2 billion. Management at Usko says the results have made it necessary for a full re-appraisal of all Usko`s business operations and expenditures to ensure focus is established on future core activities.
Additional finance facilities have been put into place and Usko says measures have been adopted to stabilise the business. These include the disposal of several of the small operations which were draining resources.
The group also downsized its head offices and right sized other operations. Usko anticipates this will produce a group with "much enhanced viability."
A loss per share of 33 cents was reported, compared to an earnings per share of 11 cents for the period to September 1998.
These substantial losses have produced a deficit in shareholders` funds to the tune of R43.9 million with interest bearing liabilities of R136 million.
Usko anticipates the two current loss-making operations, Gauteng Communications and Mediswitch, will achieve sustainable profitability before the end of the current year.
Major stakeholder Altron, who owns 20% of Usko, will continue to support the embattled company, but is exploring possible restructuring alternatives with the Usko board.
Usko warns that the year ahead will be difficult, but says, "...With the steady restoration of credibility with the customers wide customer base, a return to profitability is forecast."
Usko`s share priced regained some of the lost ground, putting on 3 cents to close at 23 cents 18 May.
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