Johannesburg - In a massive turnaround, innovative pan-African financial services provider Blue Financial Services [JSE:BFS] generated a profit of R21.8m for the six months ended August 31 2011, compared to a loss of R168.2m for the comparable interim period. This translated into diluted headline earnings per share of 0.40 cents versus a loss of 24.87c previously. Earnings per share were 0.38c and headline earnings per share 0.40c, compared to losses of 25.29c and 24.87c respectively. "The recapitalisation of the group by Mayibuye and the commencement of the key phases to its turnaround strategy for the group have yielded positive and sustainable improvements in financial results, and overall business fundamentals which provide the platform to return the group to sustained profitability," it said. Loan advances have increased steadily from the R544.6m at February 2011 to R683.7m at August 31 2011. The group continues to adopt a conservative approach to lending, ensuring that impairment levels remain within its set targets. Included in the R125.1m cash utilised in operations is R267.3m employed in increasing loan advances, a positive step from which the group intends to keep extending loan advances in a controlled manner.