Prudent working capital management led to the company and group improving the current ratio while the company also improved its cash cover with the cash to total assets position being maintained within last year's level.

Cash and cash equivalents amounted to P5.5 million.
"The group remains free from any external debt, with the full working capital investment of P9 million being financed from internal resources," the group's report states. 

 The report was compiled by executive director, Emeldah Mathe and managing director Vincent Seretse.

 In the reporting period, the group's significant portion of revenue was earned through the group's contract with the Kenyan Ministry of Finance.

"As this contract is conducted through the group's Botswana holding company, Kenyan income tax is incurred through the deduction of a revenue based withholding tax at source.

"Whilst the cash flow impact of this withholding tax was considered in the contract of negotiations, this did result in significant tax charges to the income statement," the report reads.

The company further says it has not been able to fully offset this charge through tax credits as allowed by Botswana tax legislation as other (domestic) contracts did not realise sufficient taxable   profit to allow for such credits.

Revenue generated by its subsidiaries in Uganda and Zambia increased by P4.8 million mainly due to strong software licence in Zambia. However, tight margins and the continued shrinking of business in Uganda have countered this.

Looking into the future, the company says given the challenges in the software licensing market, greater efforts have to be put in to shore up the group's ability to secure consultancy and service revenues.

"Productivity levels also need to be improved, especially in the current difficult environment.

"The group has to sell products developed and perfected in-house as these will provide the higher margins required to ride out difficult times," the report says.