DigiCore shares gained 7.14% yesterday, to close at R3, after it reported higher revenue and profit in the six months to December.
In its results commentary, the vehicle tracking company says its performance in the interim period had been "very encouraging with all operations, local and international, reporting profits and solid progress against our strategic objectives and plans".
DigiCore's revenue gained 5% to R450.7 million, while net profit gained from R21 million to R26 million. The company notes its investments in systems, sales structure and selling skills is paying off and it now has a "healthy" pipeline of products.
Among its highlights of the first six months of the year was the "long-anticipated turnaround" of its international operations, an increase in revenue generated from the insurance industry, growth in the stolen vehicle response market and gains from its cost-saving initiatives.
The company reported pre-tax profit of R29.7 million, R7.5 million of which came from its international operations. This is a "welcome reversal" from the year-ago loss of R3.5 million, it says.
The listed company says it will "leverage a variety of solutions, including insurance telematics, jamming detection and fleet analytics" to boost its top line. In addition, it will launch a new camera and navigation solution, with workforce management, in the second half of the year.
DigiCore is also buying out the 49% it does not already own in subsidiary, FleetConnect, which provides asset lifecycle software, and has signed a Ctrack distribution deal in the US.
"After optimising our business in the 2014 financial year and stepping up sales resources and skills over the past six months, we are on track to enter a growth phase," says DigiCore.
"We remain cautiously optimistic that financial results will continue to improve."
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