Johannesburg, 09 May 2002
Bytes Technology Group has turned its fortunes around, and the company, confident of better performances ahead, is to pay its shareholders a dividend of 12c per share.
The market reacted positively to the news this morning, with the Bytes share rising 45c or 10.84% to 460c in early trade on the JSE.
Chairman David Redshaw says the group has benefited from a significant restructuring undertaken over the year to 28 February, and he predicts that the exercise will continue to contribute positively in the coming year.
Bytes has disposed of operations which had occurred aggregate losses of almost R7 million.
While significant improvements were recorded in all the group`s operations, the software products and solutions business was the one disappointment, incurring an operating loss of R3.52 million.
Redshaw says the merger of the businesses acquired from Fintech with the existing operations was achieved without disruption, and he expects the benefits of this, together with increased market share, to add value to the group.
He says that offshore operations contributed 28% of revenue and 21% of operating profit from continuing operations. The offshore expansion strategy is continuing, with the group in talks to acquire 100% of a broad-based IT services company in the UK.
It is also considering acquiring, from the Altron group, a business which offers leasing finance for products and services supplied by Bytes, and Redshaw expects to put a proposal to shareholders soon.
He says the forward plans may call for a review of the group`s capital structure, and various alternatives are being considered.
Redshaw adds that the board is confident that a "satisfactory increase in earnings will be achieved" in the 2002/03 financial year.
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