Compu-Clearing increased interim revenue, but once-off costs reduced profit, says the JSE-listed company.
In the firm's six-month results to end-December, it says it saw an 8% increase in revenue, but once-off expenses affected earnings. The principal cause of the increase in costs is development and the advertising expenditures incurred on new products, it says.
However, Compu-Clearing is confident of a better second half, saying: "These expenses are of a non-recurring nature, and consequently, we expect operating margins to improve in the second half."
<B>Fast figures:</B>
Compu-Clearing interim results to end-December
Year-on-year figures in brackets
Revenue: R20.8m (R19.4m)
Pre-tax profit: R5m (R5.6m)
Net profit: R3.5m (R3.53m)
EPS: 8.9c (9.2c)
HEPS: 8.9c (9.3c)
Cash-on-hand: R17.5m (R14.38m)
Current assets: R26.6m (R26.1m)
Current liabilities: R2m (R2.8m)
The company also expects additional revenue as the result of the successful completion of a project, which saw an increase in costs this half. "There was a considerable increase in our business partner expenses, as a result of the lengthy implementation process at a major new installation," it says.
Traditionally, it says, the second half shows revenue growth, a trend it expects to continue. "Increased contribution from new products and cost reductions are expected to further strengthen second half performance."
The company, which declared an 11c a share dividend, says it will also distribute 9c a share. Its shares closed unchanged yesterday at R2.70. The company's 12-month high is R2.94 and its 12-month low is R2.12.
Related story:
Compuclear anticipates growth
Share
