During the year, the Datatrak Group continued with its extensive marketing exercise to obtain long-term contracts. It is presently in various stages of negotiation with a number of prospective customers in Africa for the provision of nationwide data tracking systems.
The Group sustained a loss on ordinary activities before taxation amounting to Lm574,142. This loss is stated after
accounting for depreciation charges of Lm249,399, goodwill amortisation of Lm64,713 and overseas marketing costs of Lm103,874. After accounting for the recognition of a deferred tax credit of Lm76,915 and losses attributable to minority interests, the Group’s loss for the year amounted to Lm424,778. The loss per share amounted to 2c6 (2002: 2c3). The net asset value per share reads 21c8.
On 22 December 2003, the Group signed a Memorandum of Understanding with investors from the Federal Republic of Nigeria, whereby it was established that Datatrak MENA Ltd. (‘DML’) was to provide Datatrak Nigeria Limited (‘DNL’) with the required technology and know-how for the installation and management of fully integrated secure location, tracking and security system infrastructures.
In accordance with the terms and conditions established by the Memorandum of Understanding, an In-country Survey Agreement was signed between DML and DNL on 3 June 2004, whereby DML is to carry out a detailed propagation study to establish the detailed technical requirements for installation of Datatrak systems on earmarked Nigerian territories. The consideration for In-country Survey is receivable through an irrevocable confirmed letter of credit in favour of DML. Following balance sheet date, the Group acquired a 30% stake holding in Datatrak Nigeria Limited a company registered in the Federal Republic of Nigeria.
The Group also signed a letter of intent outlining the programme to be undertaken in the development of the first
network in Libya.