IT group AYO makes R258 million loss

Poor financial results have continued for AYO Technology Solutions, which incurred a pre-tax loss of R258 million in the six months to end February.

While revenue increased to over R1 billion for the first time, they did not keep up with rising expenses.

The IT group, a subsidiary of Iqbal Survé's Sekunjalo Investment Holdings, had made a loss of R85 million in the half-year ending in February 2022.

AYO reported a headline loss per share per share of 79 cents, up from 35 cents over the same period in 2022.

Since late 2020, the IT group has been battling to keep its banking facilities open.

In the wake of the publication of the findings of the Mpati Commission of Inquiry into the Public Investment Corporation (PIC), banks started to close AYO's accounts, citing reputational damage.

The group said that FNB and ABSA had reopened the bank accounts they had previously closed following AYO's victory before the Competition Tribunal last year.

The order to reopen the bank accounts was granted pending an investigation by the Competition Commission into whether banks had discriminated against AYO and other companies in the Sekunjalo stable. The probe has not yet been completed.

Meanwhile, AYO said that Access Bank had terminated its bank accounts. It has taken Access to court in a bid to review the decision.

While its banking headaches are continuing, the group was able to wrap up its court case with the PIC.

In March, AYO reached a R619 million confidential settlement with the state-owned asset manager, which had wanted it to pay back over R4.3 billion.

The impact of the settlement was not included in the set of financial results released Tuesday, as it took place after the reporting period ended.-Fin24