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Y3K exceeds expectations

By Iain Scott, ITWeb group consulting editor
Johannesburg, 14 Jun 2005

Y3K Group has reported a 1 100% increase in headline earnings per share (HEPS) for the year to February - a bigger increase than that indicated in its recent trading update.

The security specialist is essentially a new company after the reverse takeover resulting from the acquisitions of Information Security Architects and iSecure, and it is planning to change its name to ISA Holdings on 27 June.

As a result, says CEO Clifford Katz, the latest results are not directly comparable with those of the previous year.

Revenue was up from R9.14 million to R31.45 million, while a net profit of R3.19 million is up from R135 000 previously. HEPS of 3.6c are up on 0.3c a share previously.

The group had indicated in a recent trading update that HEPS would be 900% to 1 030% higher than those of the previous year.

Katz says turnover was in line with budget, despite constant pressure caused by the unanticipated strength and instability of the rand throughout the year. Headline earnings of R4.6 million were achieved through rigorous margin and cost control. Headline earnings were above budget.

The balance sheet is also looking considerably healthier than before, with cash of R4.93 million on the books, compared with R687 000 previously. The group`s liquidity is also improved, with current assets of R14.86 million just more than double current liabilities of R7.37 million.

The net asset value per share improved from 2.1c to 11.1c, with a net tangible asset value per share of 6.8c, compared with a negative 0.3c a share previously.

Katz, who describes the year as both exciting and challenging, says the new management team and the divisions under their control have integrated well.

The board has proposed the first dividend in the group`s history - an ordinary dividend of 1c a share and a special dividend of the same amount. Katz says this is the result of excess cash generated by operations.

Related stories:
Y3K earnings to surge
Y3K makes two acquisitions

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