Compu-Clearing Outsourcing boosts client base

Customs clearing and freight forwarding software company Compu-Clearing Outsourcing grew revenue 22% in a tough six months to end-December 2001, thanks to a significant increase in the client base.

While the remainder of the income statement shows a small growth, chairman and CE Arnold Garber says that even though they are based on lower volumes from the freight industry, the results are "most satisfactory" in an environment dogged by political turmoil and global economic downturn.

The results pleased the market, with the share price on the JSE increasing 8c or 6.56% to 130c by late this morning.

"The growth in revenue is attributable to a significant increase in our client base," Garber says. "A strategic management decision has been taken to engage more company resources to increase our market share which has resulted in higher sales during the period under review.

"Certain of these sales are of a non-recurring nature at lower margins than the core business."

He adds that the group remains committed to a business model linked to transaction volumes and software sales.

"This will have a positive effect on profit as the economy improves."

Garber says the early part of the second half of the year saw some positive trading signals and the group is hoping for some stability in the markets.

"Cash flow remains strong with a significant improvement in our already favourable liquidity. This positions us well for growth and other opportunities that we continue to investigate."

He adds that the group will continue with its share buybacks when favourable opportunities arise.