JSE-listed SecureData will sell its European unit and has started with the process to dispose of it, urging shareholders to be cautious when trading in its stock.

Yesterday, the company published results for the six months to January, which shows revenue moved to R235.7 million, from R199 million, while net income leapt to R16.76 million, from R2.7 million.

SecureData Europe, which performed better than expected, will be sold so that SecureData can focus on its flagging African operations, it says. The sale will help the group to settle debt and provide a cash injection for its Africa unit.

In sterling, SecureData Europe posted a 44.3% increase in revenue with a 51.9% improvement in earnings before interest, tax, depreciation and amortisation. However, SecureData`s Africa unit continued to weigh on the company, as it reported an operating loss in the first half of the year.

The company says the “combination of lower profits and problems with debtor collections in SecureData Africa caused the group to remain in breach” of its loan obligations. SecureData says it has made arrangements to settle the balance once the sale of its European unit goes through.

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