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Cost savings help FrontRange

By Iain Scott, ITWeb group consulting editor
Johannesburg, 09 Feb 2004

JSE-listed FrontRange is expected to show an improvement when it reports its interim results next week.

The group, which operates through its wholly owned US subsidiary, FrontRange Solutions, says it has benefited from cost savings, which have had a positive effect on operational earnings.

It says headline earnings for the six months to 31 December will be more than 30% higher than those of the same period a year earlier.

However, it points out that the growth is coming off a low base because headline earnings in the six months to December 2002 were only R167 000.

The group performed well in the year to June 2003, reporting an attributable profit of R1.12 million compared with a previous loss of R220.57 million.

CEO Dana Buys said this was achieved through managing costs and maintaining investment in research and development.

The FrontRange share closed at 270c on the JSE on Friday, up 7c from the previous close.

Related story:
Turnaround at FrontRange

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