AltX-listed call centre outsourcing provider Dialogue Group yesterday reported it had exceeded its own pre-listing forecasts, delivering a 55% increase in revenue, to R121 million, and headline earnings per share (HEPS) up 111%, at 7.6c, when compared to its 2005 full-year results.
The company, which listed on the JSE's Alternative Exchange in September last year, attributes its 2006 success to high demand for outsourcing providers that make optimal use of international best practices.
Providing perspective
Dialogue's annual results for the year ended 31 December 2006, provided investors with comparative figures from its 2005 financial year, as well as its listing prospectus.
In this, the company said operating profit climbing 315%, to R20 million. Earnings per share (EPS) were up almost 10% on forecasts, at 7.7c.
More to come
As for its prospects for 2007, Dialogue CEO Jason Drew says the international business community is growing more interested in SA as an offshore destination.
"When it comes to outsourcing, the international business community is really a herd animal - you just need to get the first few contracts and the rest follow.
"We are also seeing SA's government providing demonstrable support for the BPO sector; which, when added to the confidence being a listed company provides to international customers, has really increased the number of queries we are receiving," explains Drew.
Despite growing international demand, Drew says Dialogue intends to keep its target on 40% international, 60% local revenue split for the simple reason that this provides the best financial security in terms of currency fluctuations and market exposure.
With a fair cash balance now at hand, Drew says the company expects to spend the money raised through listing for increasing operational capacity and acquisitions.
"The local call centre outsourcing industry has seen considerable growth in the past year, but we believe there is far more growth to follow. Our own capacity reached its limit following a bumper fourth quarter so we secured offices in Johannesburg, which we expect to be operational next month," he says.
"As for acquisitions, we will seek companies that will help us to grow our core offerings to customers. We do not expect to diversify though."
Dialogue's shares closed up 6.21%, at 154c, yesterday as the market struggled to recover from global stock sell offs.
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