JSE-listed Compu-Clearing Outsourcing (Compuclear) expects turnover for the next financial year to be boosted by further contracts.
The company, which on Tuesday notified shareholders of its annual results for the year ended June, said turnover for the next financial year should be improved as it expects to win contracts to "supply systems to a number of major clients". The company reported rental and other revenue of R38.8 million. Operating profit before net finance revenue and taxation was R9.5 million, compared to almost R8 million in the previous year.
It added its banking and order planning systems were "gaining momentum and are likely to begin generating revenues in the second half of the next financial year".
<B>Figures at a glance</B>
Compu-Clearing results for the year to 30 June 2006.
Figures for the 2005 year in parenthesis.
Revenue: R38.759 million (R37.563 million)
Operating profit: R9.499 million (R7.945 million)
Cash generated: R12 million (R11.3 million)
Attributable profit: R7.585 million (R5.786 million)
Diluted earnings per share: 18.5c (14.5c)
Cash in hand: R19.622 million (R12.594 million)
Compuclear reported growth in headline earnings per share of 30%, achieved as a result of increased revenues, improved cost control, and reduction in the secondary company tax charge, it said. Stripping out the effects of the tax reduction, headline earnings per share would have grown at 25%, the company stated.
Its income statement indicates that diluted earnings per share moved up from 14.5c to 18.5c.
The company also commented that the introduction of its business partner programme and closure of its branches, which occurred towards the end of the last financial year, aided its bottom line. "We will use the business partner strategy in our attempts to establish a geographical presence abroad and to improve service levels."
Compuclear`s international systems require some redevelopment, all of which will be done locally. "As a result, no contribution is expected for the next six to 12 months from the international operations. Management, however, remains confident of the international division`s long-term feasibility."
An investment of close to R3 million was made to renew its hardware and improve its disaster recovery capabilities. Despite this, the company regards its cash levels as "excellent".
As a result, the board approved a dividend of 11c a share and - subject to shareholder approval - a capital distribution of 9c a share. This, it said, would result in total payments of 20c a share to shareholders.
Despite these payouts, the company said it was in a healthy position to fund future operations and expansion.
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