TeleMasters optimistic despite first-half loss


TeleMasters optimistic despite first-half loss


Published Date: 2021-03-31 | Source: Stephen Gunnion | Author: Stephen Gunnion

TeleMasters optimistic despite first-half loss

The technology investment company was impacted by more customers working from home and some closing their businesses entirely.

TeleMasters' first-half performance was impacted by many of its customers working from home, resulting in a decline in corporate usage of its telecommunications services. it says a number of customers were also forced to close down their businesses as a result of the Covid-19 pandemic.

The technology investment company has reported reduced revenue for the six months to end-December as a result. It also slipped into a loss for the period after it increased its net loss allowance on trade receivables to R2.9-million due to a contract where the risk profile changed significantly.

Telemasters owns a portfolio of businesses focused on digital transformation, smart working environments and the new Gig economy. These include ICT managed solutions provider Catalytic Connections and secure disaster recovery data centre operation ConexLink. Over the period, the acquisition of two other companies, professional services business PerfectWorx Consulting and Contineo Virtual Communications, was successfully integrated. However, it said the acquisitions resulted in additional operating costs.

Revenue came in slightly lower at R41.7-million but its operating profit reduced by 92% to R107,745 due to the increased net loss allowance. It reported a loss of 0.11c per share, down from earnings of 3.9c a year earlier. It has declared an interim dividend of 1.6c per share after paying out 3.2c per share during the period.

Despite the impact of non-cash flow expenses on profitability, the company said it continued to generate strong operational cash flows. It also continued its investment in capital equipment to create additional revenue growth opportunities.

TeleMasters' share fell 19% to R1.25 in a single trade yesterday.

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