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Technology boosts Digicore

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 27 Feb 2007

Digicore's technology-driven products enhanced its growth over the last six months, says the JSE-listed fleet management technology firm.

In its interim results for the six months ended December, the company says it increased investment in research and development and product support in order to fuel further growth.

New products have contributed directly to its customer base and the company will release a new set of South African maps next month.

"With the Internet becoming a pervasive force in our industry, we have launched C-track Connect, our Web and Internet base-station software with full dynamic mapping."

The offering was well received, it says, and several vertical market applications, based on C-track, have been released to add support for remote workforce and people management.

Busy year ahead

<B>Fast figures:</B>

Digicore interim results to end-December
Year-on-year figures in brackets
Revenue: R190m (R145m)
Pre-tax profit: R50.4m (R35.8m)
Net profit: R34.9m (R25.98m)
EPS: 16.1c (11.5c)
HEPS: 15.9c (11.3c)
Cash-on-hand: R64.8m (R53.27m)
Current assets: R213.9m (R159.4m)
Current liabilities: R68m (R62.2m)
Current ratio: 3.14 (2.56)

Digicore, which reported revenue up by 31%, to R190 million from R145 million, year-on-year, is waiting for decisions on several large local and international tenders. The company expects to have an "extremely busy" 12 months going forward and estimates that 90% of commercial vehicle owners will consider some form of telematics or tracking product in their vehicles in the next few years.

The company says local sales in its fleet management division moved up 37% and it has seen an increase in government-related tender activity. "The conclusion of our BEE transaction with Amabubesi and Western Breeze, on 1 July 2006, has ensured we comply with the requirements for securing government business."

Its stolen vehicle recovery business started to gain momentum and will continue to be a focus area for management. The division is expected to reach break-even during the next reporting period.

Digicore's share closed down at R5.02 yesterday, after closing at R5.15 on Friday. Its 12-month high is R5.70 and its 12-month low is R2.44.

Related stories:
DigiCore predicts increased earnings
DigiCore implements BEE

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