Technology, education and staffing group Advtech lifted headline earnings 28.4% to R24.2 million in the six months to 30 June - its first financial results since undergoing a corporate restructure.
Group MD Renny Plit says the results are not directly comparable with those of the six months to June 1999, owing to the restructure which involved the group`s three listed entities - Advtech, Adved and Advsource - being consolidated into Adved, which was renamed Advtech.
Turnover of R283.5 million compares with a previous R98 million, while operating profit after depreciation rose to R27.3 million (1999: R13.6 million).
After-tax profit slipped to R18.0 million (R18.4 million), while attributable profit decreased to R17.5 million (R18.8 million) and headline earnings per share fell from 6.8c to 6.2c on an increase in the number of ordinary shares.
Plit says a change in accounting policy was implemented with regard to tax and goodwill. The group raised a deferred tax asset of R31.8 million, resulting in a higher effective tax rate for this period as well as in the comparative figures.
"Goodwill has been written off in the previous year to share premium account to the extent possible. Remaining goodwill is being amortised over 20 years with effect from January 2000."
Commenting on the group`s performance over the period, Plit says the education division performed well and is expected to achieve its forecast for the year, but the South African recruitment operations performed below expectations.
The Australian recruitment businesses were well ahead of target, and the skills and IT development division improved over the previous year. Outsourcing is also experiencing growth in market share and earnings.
"Results for the second half of the year are expected to increase marginally compared to the first six months," he says.
He adds that the group is confident it will achieve good earnings growth in 2001.
The Advtech share price was at 54c in midmorning trade today, up 4c from yesterday`s close.
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