JSE-listed software company UCS says although its year-end results may appear disappointing, it is well positioned for the next financial year.
Attributable earnings for the year came in at R32.4 million, down from R34 million reported in 1999, from a turnover of R134.8 million. This figure is up 26% for the year.
Headline earnings per share crossed the finish line at 12.6c, marginally down (3%) on the 13c reported previously.
The company says it has emerged from a "millennium hangover" with strong cash reserves, in the order of R100 million, which it plans to use to grow organically and make strategic acquisitions.
"While the group`s core retail solutions business, Universal Computer Services, reported an acceptable 22.5% increase in turnover and was the primary contributor to annuity revenue growth, other subsidiaries fell short of financial objectives for the year," says group MD John Bright.
"Strong corrective measures have been put in place within Accsys, the subsidiary focused on payroll and human resource management systems. EasiRun has been repositioned as a solutions and services organisation rather than a software product distributor."
The UCS share price closed trade yesterday at 86c, well down from its 12-month high of 360c.
Describing recent share price performance as disproportional to the fundamental health of the business, Bright says the directors have proposed appropriate resolutions to enable the group to buy back its shares.
No dividend has been declared in line with the company`s desire to fund growth.
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