IFCA Technologies has reported a slight decline in earnings for the six months ended 30 June, compared to the comparable period last year.
The decline is mainly attributed to a debtors book adjustment of R869 960.00 of uncollectable bad debts made in May 2008 and a turnover loss of R1,3-million from major client Transnet selling its loan book to FNB.
Apart from these incidents, the company showed an improvement in gross profit and held operating expenses in line with inflation. However, the weak trading performance had a negative impact on cash reserves and the company has decided to commence with a downsizing exercise. The staff complement has reduced from 26 to 13, which will lead to a lower fixed operating cost structure in due course.
Jack Yong, one of the founders of the controlling shareholder, IFCA Malaysia and a director of IFCA Tech,, has taken over as acting CEO of the company and IFCA Malaysia has seconded BH Loh to South Africa to take over the as the general manger.
Loh has 13 years experience within the IFCA group and has had extensive experience in managing profitable IFCA branches in Malaysia. The intimate knowledge of the products will assist the company in positioning IFCA as a significant player within the African continent.
The following prospects have been identified to return the company to profitability:
* IFCA Tech is in negotiations with a BEE partner to sell a significant stake in the company; and
* The new .Net software, designed in Malaysia, will be available to clients in Africa. The new software, which has recently been successfully launched and has had a major impact in the Asian market, is set to compete with all the major ERP business solutions software products in South Africa. Following the launch of .Net in South Africa, an aggressive sales plan will be implemented into Africa.
IFCA Tech is an enterprise-wide integrated business solutions provider providing industry specific software solutions in specific business segments.