ELECTRONIC and electrical equipment group South Ocean expects an improvement in this year’s financial results following a poor performance in the year to December 2012.
Earnings per share for the year to December dropped 358% to a loss of 75.6c.
"Based on the trading history and exogenous market factors going forward, 2013’s results are expected to show an improvement, and the group continues to strive for increased market share and expansion of its product range," the company said.
The company said it had for the first time entered the tender market and had submitted a number of tenders that would increase revenue if successful.
South Ocean increased turnover by 11.5% to R1.4bn, while headline earnings per share rose 18.6% to 36.3c.
The company said its earnings were affected by seasonality, with earnings for the second half historically higher than the first six months.
"Management expects the traditional seasonality trend to continue in future," it said.
The main reason for the fall in earnings is a goodwill impairment charge of R175m relating to the acquisition of Radiant Group in 2007.
This charge resulted from Radiant Group’s earnings falling during the year and the further disruption to business from the national transport sector strike in September 2012, South Ocean said.
"Steps have already been taken by management to improve the profitability of this segment, which will materialise during the 2013 financial year," it said.
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