Muvoni hit by biometric division
Alt-X listed Muvoni Technology on Wednesday (29 May) reported a diluted headline loss per share from continuing operations of 0.39 cents for the six months ended February 2013, from a prior loss of 0.17 cents.
Biometric projects reported an operating loss of R729,000 for the reporting period, compared to an operating loss of R2.1 million for the six months ended February 2012.
Group operating profit from continuing operations, however, increased to R4.4 million for the six months ended February 2013, from R3.3 million in 2012.
Group revenue from continued operations increased by 13%, to R59.7 million.
Revenue of secure credentialing services increased by R5.5 million (12%), while revenue of biometric projects increased from R6.8 million to R8.4 million, Muvoni said.
Muvoni is set to de-list from the local exchange after it announced last month that it had received a firm intention from Horizon Investments & Financial Services to acquire all the issued shares in the IT group.
Muvoni Technology specialises in services that include, amongst others, criminal background checks, pre-employment screening, automated fingerprint identification systems and biometric solutions.
Looking ahead, for its credentialing services, the criminal record checking service, conducted by Afiswitch, has reached maturity and lower growth is expected.
“The company is now running at full capacity of the current SAPS AFIS, but an increase in capacity is being implemented, which will allow the company to pursue further growth opportunities in the service,” it said.
MIE, Muvoni’s background screening company, has been experiencing increasing demand for its services and has also acquired new contracts that will further increase revenue during the remainder of the financial year and beyond.
“The company is also opening branches in other African countries, which will be a further avenue for growth,” the group said.
For its biometric projects division, Muvoni said that this segment has made in-roads in the financial sector with the provision of biometric readers for client verification.
“In the government sphere, the company continues to be hampered with long sales cycles and government tenders that are issued, but then are almost always postponed or cancelled. The company has recently been awarded a three-year contract by Icasa for the supply of monitoring equipment,” it said.
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