Fleet management technology group DigiCore has declared a maiden dividend of 2c a share after growing after-tax profit by 46.5% in the six months to December.
Revenue for the period was up by 16.48% to R107.27 million, from R92.09 million for the same period a year earlier.
CEO Nick Vlok says the group was awarded three significant tenders last year and new installations will continue throughout this year.
Pre-tax profit rose by 59.4% to R16.22 million (2003: R11.07 million) while after-tax profit increased to R16.22 million. The group achieved headline earnings per share of 8.4c (5.5c) and basic earnings per share of 8.5c (5.3c).
However, stock and debtor levels rose because of record demand and only partial delivery in December, resulting in a negative cash flow of R2.5 million from operating activities. "These high working capital levels are receiving attention and are in the process of being reduced," says Vlok.
Bank balances of R23.49 million at the end of the six months compare with R58.71 million previously. The balance of current assets comprised inventories of R34.75 million (R26.28 million) and trade and other receivables of R50.19 million (R28.82 million).
The group`s net asset value (NAV) rose from 57.8c to 63.9c a share, while tangible NAV rose to 53.5c (48c) a share.
"We are approaching 2005 with expansion on our minds," says Vlok. "However, we are mindful to sustain new growth while maintaining proper risk management and controls."
He adds that in addition to entering new markets, the focus will fall on technology enhancement and growth.
The DigiCore share rose by 11c or 7.3% to close at 161c on the JSE yesterday.
Share