Call centre group CCN Holdings has reported a net profit of R4.15 million for the six months to end-October, compared with a profit of R20.74 million for the year-earlier period.
<B>Salient figures</B>
CCN Holdings results for the six months to 31 October 2003.
Figures for the prior-year period in parentheses.
Revenue: R22.58m (R18.02m)
Continuing operations: R16.76m (R0.31m)
Discontinuing operations: R5.82m (R17.71m)
Operating profit (continuing): -R1.34m (-R0.21m)
Operating profit (discontinuing): -R0.01m (-R5.29m)
Net interest received: R5.44m (R3.21m)
Net profit: R4.15m (R20.74m)
HEPS: 5.96c (-3.16c)
EPS: 5.96c (28.58c)
Current assets: R86.26m (R83.54m)
Cash and equivalents: R74.03m (R65.53m)
Current liabilities: R14.22m (R5.72m)
NAV per share: 112c (108c)
The prior-year figure included the effects of a R23.03 million profit on discontinuance. Headline earnings per share improved from a previous loss of 3.16c to a positive 5.96c.
CCN`s continuing operations, mainly the outsourced contact centre division and head office, operated at a R1.3 million loss, compared with a prior year loss of R0.21 million.
"It is anticipated that additional investment will be required in order to grow the market, build infrastructure and develop skills in the short to medium term, with benefits being realised over the longer term," says CEO Lawrence Brick.
The discontinuing operations, which include NetFlorist, traded at breakeven levels. "Although NetFlorist is still disclosed as a discontinuing operation, the business has value and it will continue to receive the group`s support," Brick says.
He says the group has successfully integrated both the acquisition of Call Centre Nucleus from MB Technologies and the Tiscali contact centre.
"CCN believes that growth for outsourced customer management solutions and services will be driven by the trend of global Fortune 1000 companies turning to outsourcers to provide cost-effective, high-quality customer support solutions."
He says the local market for contact centre outsourcing is still at an early stage and the group is playing a significant role in developing the market.
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