Compu-clearing Outsourcing, the IT specialist for the freight industry, says it is satisfied with its performance in the year to June despite a marginal decline in operating profit.
CE Arnold Garber says the performance is satisfactory in the light of both local and international economic events.
An operating margin of 24% compares with 25% in the previous year. Garber says the fact that the level was sustained is an indication of efficient resource management.
<B>Compu-clearing Outsourcing results for the year to 30 June 2002</B>
Revenue: R29.43m (R28.12m) [+4.7%]
Operating profit: R7.07m (R7.13m) [-0.9%]
Profit before tax: R7.75m (R8.06m) [-3.9%]
Attributable earnings: R5.17m (R5.5m) [-6%]
HEPS: 11.7c (12.5c) [-6.4%]
Current assets: R18.91m (R14.71m)
Current liabilities: R2.2m (R2.95m)
NAV per share: 71.4c (63.1c)
Cash generated from operations: R10.02m (R10.53m)
Cash: R12.4m (R8.09m)
Total revenue improved by 5%. Software rental income of R18.45 million, up 15% from the previous year, accounted for 62% of total revenue.
Hardware rental income fell 19%, from R10.8 million to R8.79 million.
Garber says the group`s various activities have been departmentalised to allow for greater control over profit contributions, costs and service levels.
"A trend that is discernable is for our customers to acquire their own hardware," he says. "This will result in a drop of turnover. However, the high manpower cost associated with this division will be eliminated over time."
Networking rental income soared from R456 000 to R1.53 million, while net hardware and networking sales declined marginally from R537 000 to R534 000.
Other income accounted for R119 million.
Garber says there have been positive signs in developing international markets, and the new financial year has seen an improvement in volumes. This, he says, gives the group "every reason to be optimistic as to future prospects. Current profit levels are encouraging."
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