Amap said revenue was 33% lower, at R612m, in the six months to December. The loss per share was 23.6c, or 250% worse than the first half of last year.
The company was hard hit by its strategy to stock up on power inverters, which backfired after load-shedding came to an end.
It has since written down its stock to net realisable value. In addition, its decision to narrow the range of electronic goods to products that would provide the returns it was seeking had resulted in a drop in revenue. As a result of its write-down of R74,5m in power inverters and clearing out of excess audio and television stock, gross margins took a knock.
Warwick Lucas, an analyst with Imara SP Reid, said the company had done well to bring down stock and its cash-positive position was a “good start”.
Amap generated cash from operations of R72,1m, as opposed to cash used of R79,9m in the prior corresponding period.
It said this had been achieved through targeted restructuring, which cost R5m, as well as improved debtor and inventory management. As a result, the group had net cash on hand of R42,7m compared with R15,5m previously.
Earlier this month, Amap said it was selling its Atlantis property where its manufacturing division was based for R35m.
Source: Business Day
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