JSE-listed Compu-Clearing Outsourcing expects business to pick up in the second half of its financial year, as exports and imports seem to be gaining traction and a new product will be rolled out.
The company provides IT products and services to the customs clearing, freight forwarding, air cargo and related industries.
Compu-Clearing grew revenue despite the fact that imports, the bulk of its business, were down 30% into SA overall. Chairman Arnold Garber explains that this is due to a slight price increase and the addition of new customers. However, the company's operating costs grew faster than revenue, which resulted in net profit dropping.
Its results for the six months to December indicate the market is picking up, with a possible bottoming out of the decline in import and export volumes. Compu-Clearing grew revenue 6%, to R23.8 million, while net profit was down 8%, to R3.2 million.
However, the company is hopeful of a moderate increase in cargo volumes during the second half of the year, which is when it traditionally has its stronger trading period. Garber is confident the second half will be an improvement on the first.
software rental increased 6%, which was an improvement on flat earnings growth for the year to June. Software is its largest division, and added R18.3 million to total income. Turnover from hardware rental grew 7%, to R5 million.
Adding income
Compu-Clearing's newly-created division, Cargowise, did not add any income to the group, but is expected to start adding to revenue in the next financial year. The division cost Compu-Clearing R400 000 in operating expenses. Garber explains that the cash was spent on training staff.
Cargowise, for which Compu-Clearing has regional distribution rights, is an enterprise cargo management solution that will enable the company to expand its revenue base, it says. The first implementation of the product will start in July.
Garber says the global firm had not invested in SA, apart from one failed attempt a few years ago, because volumes were too small. However, Compu-Clearing is now able to bundle its software, which integrates into customs, with Cargowise.
The company's shares closed flat yesterday at 250c.
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