Bytes Technology Group increased adjusted headline earnings per share from 53.51c to 67.94c in the year to May, despite a 14% drop in revenue from R3.04 billion to R2.61 billion.
CEO David Redshaw says the decrease in revenue is the result of the abnormally high revenues from Microsoft licensing in the UK in the previous year as well as the stronger rand.
Group operating income increased from R166 million to R185 million, the result of a focus on operating efficiencies. "Significant operational efficiencies have been achieved across a broad front during the year, with most operations realising rationalisation and synergistic savings," Redshaw says.
The performance of the UK operations deteriorated significantly, owing to "extremely difficult" trading conditions in that region. "It is, however, pleasing to note that these operations returned to profitability in the second half, a trend which has continued subsequent to year-end."
Redshaw says further improvements are expected as a result of various "structural and organisational steps" that have been implemented. "Having carefully considered the major factors which influence the group`s business prospects, the board faces the financial year to February 2005 with confidence.
"Given the issues which restricted profit growth during the first half of last year, a fundamental earnings improvement on a comparative basis is foreseen at the interim stage. This should enable the group to post a satisfactory earnings performance for the full year."
A dividend of 22c a share, 37% higher than last year, has been declared.
Redshaw says no material acquisitions are being considered, with emphasis being placed on reducing the net interest-bearing debt of about R147 million, although any suitable opportunities will be examined if they arise.
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