A focus on core operations - electronics and IT and communications - helped Control Instruments lift net earnings 167% to R6.03 million in the six months to 30 June.
Headline earnings per share rose from 2.55c to 6.81c, but turnover was limited to a 14% growth to R72.5 million. No interim dividend has been declared.
The group recently adopted a business strategy to reposition itself in the IT, fleet management and automotive electronic sectors, and in line with that disposed of several non-core businesses, including Rhomberg Electronics with effect from October last year.
That sale included the CI Gauge division, which was transferred into Rhomberg in August last year, but excluded its South American operations. Other disposals were CI Cellular Division, CI Time Access and Parking Division, the majority of CI Division`s South African branch network, and the Nortech Division of Electromatic.
Control`s IT and communications interests include Matrix Vehicle Tracking, Datapro Services and several start-up operations. "Matrix is trading strongly and profitably and has significantly expanded its customer base," says MD Richard Friedman. "Datapro has also increased its customer base and annuity revenue stream. The progress of the other start-up ventures to date has also been encouraging."
The group`s electronics operations` attention to cost management and improved manufacturing efficiencies resulted in an improved margin, the company says. Rand hedge sales now account for 83% of the electronics operations` turnover.
The IT and communications business increased turnover 62.8% to R13.2 million in the six months under review from R8.1 million in the year-earlier period, while the business sustained a loss before tax of R821 000, a 42.7% improvement on the previous R1.4 million loss. The electronics business increased turnover only 5.4% to R58.6 million, but pre-tax earnings rose 120.5% to R7.04 million.
On the balance sheet, net cash reserves of R21 million show a decrease from a previous R30.7 million, which the company says is as a result of additional investments in Matrix, Datapro, start-up activities and capital expenditure.
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