Zachary Harding, CEO of SSL Venture Capital Limited has announced that the company is considering fresh fund raising to take advantage of opportunities under review.
The company is still making a comeback from a tough first year in which auditors made demands for adjustments which affected the first year ‘s results as at June 2019.
In the first-quarter report, Harding outlined that fresh financing would allow the company to support growth initiatives and take advantage of new opportunities. He did not outline the financing strategy being considered.
For the first quarter ended September 30, good results from the company’s data Intelligence segment buttressed weak performance of the beverages unit, but the company still made losses of $25.6 million. SSLVC’s revenue for the quarter was $51.0 million which was a $7.5 million decrease over the 2018 quarter revenues of $58.5 million.
The losses represented a deterioration from the prior year’s profit of $1.7 million. Harding said losses were mainly attributable to the company’s beverage distribution business and costs incurred as significant one-off expenses due to a reorganization and financial management review that was done.
The reorganization and review were completed as part of implementing new processes and governance procedures across all portfolio companies, he outlined. Harding stated in the letter to shareholders about the quarter’s results that the positive outcome of the adjustments was expected to be seen in future quarters. Harding noted, “Our data intelligence company reported a profit of $2.1 million for the quarter ended. With these efficiency and governance improvements, we expect to see a positive trend in our performance going forward.”
He said the company would continue to streamline operations, adding management was projecting “continued improved performance in all areas of our businesses and for improved results by the end of the financial year”. He stated that the Group will embark on fundraising activities in the foreseeable future to secure the necessary financing support to grow current initiatives and allow us to “take advantage of new and exciting opportunities.” He did not expand on the projects under consideration.
SSL Ventures listed on the JSE in 2018 following the reverse takeover of music publisher C2W Music Limited and later took stakes in three start-ups. The company grew revenue from half-million dollars in 2018 to $332 million in 2019 from a series of acquisition of smaller companies.