Mathomo recorded an operating profit of R7.3 million for the period. This compares to R6.8 million for the seventeen-month period ended 28 February 2005. Net finance costs paid amounted to R2.7 million (R10.8 million inclusive of interest accrual of R2.9 million on amounts due in respect of outstanding taxation). The group recorded a net profit of R3.1 million for the period (loss of R5.5 million). The major reason for the loss of R5.5 million is due to the restructuring and other once-off expenses.
The results have been reviewed by Deloitte & Touche and includes an emphasis of matter paragraph with respect to going concern. Over the past year, the Mathomo directors have implemented a restructuring programme in order to restore certain divisions to profitability and to strengthen the group's financial position. The effects of the restructuring process continue to yield positive results. Accordingly, the directors believe Mathomo to be a going concern and have therefore adopted the going concern basis in preparing these interim financial statements.
Prospects
The group continues to face considerable challenges. The repositioning is achieving expected results. Over the past year, much progress was made improving the focus and size of its business. Market conditions have gradually improved and the group expects that better execution and greater operating efficiencies in will continue to drive margin expansion and revenue growth.
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