CS Holdings interim results - highlights
* Revenue increased by 15.3%
* Significant turn around in operating profit to R14.7 million
* Cash generated by operations as a percentage of EBITDA 103%
CS Holdings, the JSE-listed IT group, today announced that it has achieved a 15.3% growth in revenue to R256 million from R222 million for the comparative six-month period ending 31 December 2002.
This shows an increase in operating profit of R14.7 million compared to the R2.7 million for the comparative period. This is significant when compared to the preceding six-month period in which the company generated a loss of R16.1 million. The comparative financial results have been restated with the pro-rata financial effect of the items referred to in the trading updates published on SENS and in the media on 21 August 2003, which relate to the first six months of the previous financial year.
Annette van der Laan, CEO CS Holdings, says: "In light of last year`s challenges, we are pleased that we could move swiftly in turning the business around in a relatively short period of time. We initiated decisive action and embarked on a streamlining exercise, which has started to reflect a positive effect on our financial performance and we expect to see this continue for the remainder of the financial year. Consequently, the company has managed to improve gross margins while reducing its operating and fixed overhead costs by 8%."
"Historically, the group`s financial results are lower in the first half of the financial year," says Van der Laan. "With the majority of all loans and vendor payments being made, we also anticipate our cash flow situation to improve significantly during the next six-month period."
During the period under review, Reunert Ltd, a prominent player in the electronics and office automation sectors, became a strategic shareholder to CS Holdings. The group remains dedicated to selling its specialised and integrated solutions to a strategic client base and focused on organic growth through its key accounts.
Further details regarding CS Holdings` results can be found on SENS at www.sharenet.co.za or www.cs.co.za.
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CS Holdings provides business and IT solutions that enable sustainable competitive advantage for clients through reduced cost, managed risk, improved efficiency and added effectiveness. This is done by means of integrated solutions that incorporate the complete value chain of strategy formulation, best practice business processes, appropriate information technology and optimised people effectiveness.
CS Holdings is a leading BEE company for the ICT sector, and have received the prestigious Empowerdex A rating in 2003.