Full-year results of troubled JSE-listed IT group Faritec are likely to paint a picture of a company in dire financial straits. It warned investors on Friday, after the markets closed, that it expected to post a headline loss of about 36c/share.
The company, which is under new management following the recent departure of CEO Simon Tomlinson, is battling to keep its head above water. Investors are hoping a recent rights offer and the acquisition of a majority of the company’s equity by Shoden Data Systems will be sufficient to save the company. Had these two transactions happened prior to the financial year-end, the company would have reported a headline loss of about 5c/share due to the increase in the number of shares in issue, it says.
In its Friday statement, Faritec says it is now in a “much improved position as compared to the period just prior to the corporate transactions”.
“There is a new management team in place, the cost structure has been significantly reduced, the company has narrowed its focus to its core enterprise offerings and the high-end corporate customer base remains promising. Faritec is now well poised to build on its stabilisation and realise its full potential over the course of the coming year.”
However, the share has so far failed to react. It closed at 5c on Friday, 1c above its 52-week low.
The group will publish its full results on Wednesday. — Staff reporter, TechCentral
