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The board of Datatrak issued the preliminary financial statements for the full year 2006. Giving out the barest minimum of figures and a lengthy explanatory note, the accompanying extract from the Auditors report makes interesting reading.
Overall Datatrak registered a marginal decrease in Revenue of 1% and a reduction in costs of 8%.This improvement came about despite Lm56, 000 were spent in restructuring costs. This left the company with a loss of Lm75, 000 around 1.7% more than the previous year. Datatrak has 50% shareholding in a couple of profitable undertakings, but since it does not have overall control, part of the profits from these operations is not attributable to the company. Thus its success of turning an Lm8000 loss into a profit of Lm57, 000 have to be shared with other partners not members of Datatrak Holdings’ shareholders, resulting in a the loss figure of Lm75, 000.
The Company’s Balance Sheet shows that the Total Assets are over Lm5.1 million, of which 60% are funded by the Shareholders. At Cash flow level, the company generated less from operations and more from financing sources. Because of higher investments made during the year, the end of year cash figure deteriorated.
During the last financial year, the company carried out a financial restructuring exercise.
The notes given by the Directors make interesting reading. They highlight the fact that they have reassessed the useful life of their intangible assets and consider that the book values suffice. They also believe that they agree on the Going Concern basis of the financials presented on the basis of expected successful outcome of the projects they are undertaking. The most notable one is that of Nigeria where they have reached certain milestones leading to an eventual license agreement to operate a network in a number of regions.
The auditors in their report to the shareholders do not give a qualified opinion, but emphasize that this judgment is based on the successful outcome of the projects and the value of non-currents assets as stated.
Currently, Datatrak trades at 27cents being 1.28 times the Net Asset Value. |
