ADC confident of growth

By Nicola Mawson, Contributing journalist

Johannesburg, 07 Nov 2006

Alliance Data Corporation (ADC), listed on the JSE's Alternative Exchange, is confident of boosting revenue in the second half of the year as it has new products in the pipeline.

The resource management company yesterday reported R47.6 million revenue for the six months to end August, up from R11 million last year. The group generated R7.8 million in after-tax profits, compared to R2.4 million in the last period. Earnings per share increased from 10.6c to 25.5c.

The company, which mainly supplies the mining industry, said it "continued to research and develop new products with specific reference to the FireFly range of products which will give rise to an increase in revenue in the second half of the year".

FireFly is a range of time and access products and includes functions such as the ability to operate in an offline situation, improved communication capabilities, constant power and network availability monitoring, and access control. The system also includes biometric scanning devices.

ADC previously indicated the new product would aid it in exploiting opportunities locally and offshore. Research and development, it said yesterday, was also being used as a way to expand into other areas such as the hospitality sector.

During the year, the company expanded into the mining arena when it bought Sindele Mining Supplies, with effect from 1 March 2006, for 18 million shares at R1.50 each. This acquisition, it said, had a positive effect on its results.

The company's shares started tracking upwards at 11am yesterday and were changing hands at R1.70 by 1.29pm. Friday's closing price was R1.65. Its 12-month high is R1.90 and its 12-month low is 91c.