Listed IT solutions company Crux Technologies is beginning to reap the rewards of its extreme pruning of non-profitable divisions, growing profit from R1.1 million to R7.2 million for the year to May.
Revenue for the year to May came in at R97.5 million, compared to R157.2 million for the year to 2000.
Although revenue for the year was still down, interim results issued in December attributed the decline to the sales of its training and insurance divisions.
The solutions provider announced the disposal of its training division, Computer Training Institute, in September last year.
This was the third stage in Crux`s restructuring exercise, which began in 1999 with the disposal of the insurance division, followed by the internal restructure and management changes earlier in the year.
At the time of the interims, the Crux board admitted that the "inordinate amount of management time spent on the disposal of the insurance division, and subsequently the training division, took its toll on revenue".
Operating income bounced up to R10.6 million from R2.2 million, an improvement of 437%. Operating margins from the refocused and slimmed down group went up from 9.3% to 11.4%.
Headline earnings for the year also improved from 0.3c to 4c per share.
Crux still has a strong focus on the public sector for ongoing business, but the board says it has turned its attention to the private sector in a bid for additional business, with particular emphasis on banking solutions.
No dividend was declared for the reporting period.
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