Fleet management technology company Digicore Holdings says several large orders have restored the company to its former level of profitability.
At the end of August Digicore reported that its operating profit for the year to June had fallen from R26.6 million to R3.8 million, which MD Nick Vlok blamed on difficult trading conditions in the local as well as offshore markets.
However, large orders, including the R150 million debis Fleet Management deal signed in June and not reflected in the year-end results, have boosted the company.
He says the income stream for the three months to 30 September is in stark contrast to the year-end results, with the operating profit for the quarter standing at R10.79 million.
Turnover rose from a monthly average of R8 million for the last financial year to a current average of R27 million a month for the quarter, improving the company`s cash balances by R14 million.
Vlok adds that the debis contract forms part of an outsourcing trend in the management of large-scale fleets, and Digicore stands to win a number of tenders in this area, sustaining its growth over the coming years.
"With these encouraging results, we are on target to meet our year-on-year growth projection of 30% for the next three years," he says.
The Digicore share, which closed at 18c on 28 August, when the results were released, has been climbing since then, closing at 33c yesterday. It was up 2c by midmorning, after touching 37c earlier today.
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