IST Group continues turnaround

JSE-listed IST Group has continued its turnaround, increasing headline earnings 468% in the six months to 31 August 2001.

CE Harry Coetzee says all the group`s divisions contributed to the performance in a period characterised by a high level of operational activity.

IST is an electronic and software technology-driven group which operates in the telecommunications, energy, industry and defence sectors.

"The high level of activity throughout the group is indicated by the fact that the electronics group currently has tenders of more than R1 billion under adjudication, while the mechanical group submitted tenders worth more than R100 million," he says.

Significant developments during the six months include the disposal of the 40% shareholding in Pragma, which the group says did not fit into its current focus.

Telkom extended the contract for digital loop carriers, and Eskom extended the national contract for remote terminal units and substation control systems.

The group has also been appointed as turnkey contractor for the extension of the compressed air plant at the Mozal aluminium smelter.

Coetzee says all the existing operations are well placed to sustain their robust performance.

"Provided the current international unrest does not escalate to the point where it has a major impact on our markets and suppliers, we expect that the group will at least meet our earnings forecast of 10c per share for the full year to February 2002," he adds.