Gandalf puts new trust in Zaptronix on better resu
Gandalf puts new trust in Zaptronix on better results
February 3, 2004
By Gugulakhe Masango
Johannesburg - Gandalf Trust, the merger and acquisitions specialist group, would focus on recapitalising the business of Zaptronix after the information technology (IT) firm delivered improved results for the first half to October, Karl Gribnitz, the executive trustee of Gandalf Trust, said yesterday.
It was also keen on moving its listing to AltX, the JSE Securities Exchange's alternative exchange.
Zaptronix reduced its net losses by 91 percent to R244 000, while sales rose 21 percent to R1.5 million in the first half to October.
"We have cut overheads costs by 73 percent and focused on viable businesses," said Gribnitz.
Gandalf Trust rescued the listed IT firm from the brink of collapse last year by acquiring 63 percent of the firm's issued share capital, representing 90.9 million shares. It paid R455 million, or 0.5c a share.
The trust bought the shares from Zaptronix's majority shareholder, Hitachi, which decided last April to sell its shares.
Gribnitz added that the trust would apply to the JSE for its listing to be transferred to AltX after it announced its investments plans.
Jens Stratenwerth, the executive director of Zaptronix, attributed the improved company results to subcontracting a lot of work and focusing on the metering solutions business.
"We are down to less than a dozen employees and will take this small dedicated team to leverage our products to generate wealth," Stratenwerth said.
Headline losses a share had improved by 90 percent to a loss of 0.2c, and operating costs were reduced to R902 000 from R3.35 million in the previous period.
He said the business was doing well operationally, but from the listing perspective it had to look at its shareholders for advice.
"We support our controlling shareholder's decision to recapitalise the business because if we don't the company will have marginal growth and that is not what the shareholders want from the operation," he said.
Cash flow from operating activities improved to R19 000 from a negative of R1.94 million.
The company also advised its shareholders that its full-year results to April would be 30 percent higher than in the previous period.
The Zaptronix share price gained 1c to close at 3c in Johannesburg yesterday.
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