Education and IT staffing group Advtech has reported strong growth thanks to a restructuring programme.
The group`s results for the six months to 30 June show the benefits of a restructuring exercise aimed at restoring control, particularly in its core operations.
<B>Salient figures</B>
Advtech results for the six months to 30 June
Year-earlier figures in parentheses, move in square brackets:
Turnover: R240.23m (R288.05m) [-17%]
EBITDA: R28.68m (R26.19m) [+10%]
Operating profit: R19.22m (R15.99m) [+20%]
Profit before tax: R14.61m (R9.29m) [+57%]
Headline earnings: R12.75m (R6.83m) [+87%]
Exceptional items: R248.76m (R17.21m)
Attributable earnings: -R235.79m (-R7.77m)
HEPS: 3.2c (1.7c) [+88%]
Current assets: R69.44m (R114.87m)
Current liabilities: R69.49m (R55.4m)
Cash generated by operations: R26.2m (R21.29m)
CEO Frank Thompson says last year`s operational performance reflected, among other things, "the harmful commercial and management consequences of certain imprudent prior acquisitions".
He says a decline in turnover for the period is mainly the result of the disposal or termination of "non-contributing" businesses. Despite this, operating profit rose 20%.
Interest-bearing debt was reduced as a result of improved asset management.
Thompson says Advtech is involved in two legal cases, having instituted claims against two vendors for alleged breaches of contract.
"The group`s annual results are largely dependent upon an improved performance by the recruitment division in the second half of the year. The education division, however, is expected to post an improvement in performance substantially based on the increases in student enrolments which are already in place.
"Under these circumstances it is difficult to forecast the group result to December. However, it should be noted that the 87% increase in headline earnings achieved in the first half was off a low base and thus is unlikely to be sustained at the same level for the full year."
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