Technology retailer Connection Group Holdings` increased interim turnover from its continuing operations by 18.2% to R365.71 million despite falling IT prices.
CEO Grattan Kirk says strong growth in sales of personal computers, notebooks, digital photography, gaming and multifunction devices offset the effect of falling prices resulting from rand strength.
"With prices some 25% lower than the comparable period we saw phenomenal growth in volumes. New technologies have also added to demand. If you buy a digital camera, for example, you need a PC, a printer and a CD or DVD writer."
The results for the six months to 29 February - the first since the group disposed of its non-retail assets - show a net profit of R11.72 million, 32.9% higher than the prior-year figure, on a continuing operations basis. Headline earnings per share rose by 68% from 20.71c to 34.79c.
Kirk says the group is busy with the integration of the 16 photographic outlets it bought from New Teltron, giving it a low-risk introduction into the fast-growing digital photographic sector of the IT retail market.
The integration "will involve a change of name to 'Photo Connection` with the corresponding upgrading of all in-store livery as well as the introduction of an expanded product range. Where appropriate, certain of the stores will be revamped to more correctly represent the 'Photo Connection` image."
He says Photo Connection is not expected to have a material effect on earnings over the next six months, but will do so in the 2005 financial year.
The group expects it will be able to show "appreciable earnings growth" for the full financial year and will pay a dividend after the release of the year-end results.
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