Net1 Applied Technology Holdings (Aplitec) says its business model has paid off, resulting in a 21% increase in headline earnings per share for the year to 30 June 2001.
Chairman and CEO Serge Belamant says the latest financial results demonstrate that profitability can be achieved in markets traditionally shunned by other organisations.
Figures at a glance
Net1 Applied Technology Holdings results for the year to 30 June 2001
Previous year`s figures in parentheses:
Revenue: R557.45m (R436.86m)
Operating profit: R127.66m (R79.24m)
Profit after tax: R96.17m (R65.53m)
Attributable earnings: R93.19m (R59.56m)
HEPS: 42.23c (34.87c)
Current assets: R317.97m (R206.89m)
Current liabilities: R81.6m (R104.1m)
Cash flows from operating activities: R136.4m (R80.48m)
Cash and equivalents: R200.88m (R55.42m)
NAV per share: 134.49c (78.32c)
Aplitec provides technological solutions based on proprietary smart card technology to underbanked communities.
Belamant says the success is largely due to Aplitec`s business model, which, with its technology, has been tailored to focus on real needs in developing economies while "inter-operating with existing First World offerings".
The company made progress in growing internationally, with expansion into Malawi, Ghana, Burundi, Rwanda and Latvia. Other proposals have been requested by organisations and governments in Africa, the Middle East and Australia.
Belamant says the technology sales, maintenance, outsourcing and international initiatives division performed well above expectations despite significant weakness in the global IT trading environment.
The division`s revenue increased by 50% to R99 million, with profitability doubling.
Belamant says the pension and welfare division continued to perform in line with expectations, while the micro-finance division performed adequately.
The relationship with Nedcor increased significantly during the year, he adds. Nedcor acquired 25.1% of Aplitec in July 2000 and has since increased its stake to 28%.
"Nedcor`s contribution of R55 million to Aplitec`s revenue during 2001 was in line with expectations. Nedcor now provides most of Aplitec`s banking requirements."
He says the company is confident that organic growth will be sustained and that returns will be enhanced by the local and international implementation of its next-generation products, including the Aplitec instant bank system, wage payment system and others.
The group is also identifying strategic partners, joint ventures and potential acquisitions.
The Aplitec share was trading 4.29% or 15c higher at 365c on the JSE this morning.
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