LONDON (Alliance News) - Atlas Development & Support Services Ltd Thursday reported a much wider pretax loss in its recently-ended financial year, despite making revenue after not generating any the year before, as it booked costs associated with restructuring and its contract base was reduced.
Shares in Atlas were trading down 17% at 0.708 pence Thursday morning following the announcement.
The African-focused support services and logistics company said that its pretax loss in the year ended June 30 widened to USD9.5 million from USD1.4 million the year before, even though it made a revenue of USD14.6 million. It did not generate any revenue the prior year.
The revenue in the recent year brought with it GBP9.2 million in cost of sales, compared to none the year before, while operating expenses ballooned to GBP11.3 million from GBP2.5 million. Atlas also incurred a share option charge and finance costs in the recent year, compared to no such costs the year before.
Atlas said profit was hit due to a reduced contract base, restructuring costs incurred during the downscaling of operations, and foreign exchange losses.
Atlas added that it has been approached by "a number of parties" regarding potential joint ventures, particularly in the oil and gas space, and said it has identified a number of businesses which require its services.
"With the general economic and operational environment in East Africa being mixed the board has focused on the preservation of capital through prudent cost cutting and streamlining initiatives. With capital in the bank and a significant asset inventory there remains opportunity; both within Africa and potentially beyond. In this vein, the board is in discussion with a number of asset financing banks with regards to potential acquisitions and expansion opportunities," Chairman Ian Mann said in a statement, adding:
"The board understands the frustration of shareholders during this period but is working tirelessly to adapt and improve the situation to generate revenue. "
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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