DigiCore Holdings, the JSE-listed fleet management and management information systems company, expects international expansion to diminish the influence of local market fluctuations.
<B>Salient figures</B>
DigiCore Holdings results for the six months to 31 December 2002.
Year-earlier figures in parentheses, move in square brackets:
Revenue: R80.44m (R92.06m) [-12.6%]
Operating profit before depreciation: R15.07m (R14.79m) [+1.9%]
Profit before tax: R11.13m (R11.09m) [+0.3%]
Profit after tax: R9.12m (R9.18m) [-0.7%]
Attributable earnings: R9.12m (R9.21m) [-1%]
HEPS: 4.1c (4.1c) [0%]
Current assets: R89.06m (R91.42m)
Bank balances: R23.07m (R20.28m)
Current liabilities: R15.49m (R28m)
NAV per share: 48.2c (44.4c)
Tangible NAV per share: 38.9c (34.7c)
Announcing the group`s financial results for the six months to 31 December, executive deputy chairman Nick Vlok says although the results for the short-term are important, the emphasis is largely on the company`s long-term viability and growth.
"The group has been re-engineered to simplify its organisation and to make it more responsible and efficient.
"The proper strategies and financial and operational structures are now in place. This is reflected in the significant fall in debtors and creditors levels, attributed to operating efficiencies flowing through from the centralisation of the accounting department and the full implementation of an analytical management information system.
"Stricter credit control procedures have also been implemented during the period."
The roles of certain executives have also been refined to allow all critical areas of the business to receive proper attention. The deputy chairman will in future concentrate on the local market and the introduction of new technology and products in developing other market segments.
The international business will fall within the ambit of the MD`s responsibilities.
Vlok says the group has made a special point to maintain and strengthen its research and development budget during the past six to eight months.
A range of new products is to be introduced in the second half of the financial year and this is expected to boost fresh sales. A new hi-tech "track-and-trace" product has been developed in conjunction with a major local recovery company and will be marketed towards the June year-end.
"Annuity-based income generated from this source will become substantial in the long-term," Vlok says. "A more cost-effective product for the service industry and light commercial vehicle market will also be unveiled at the time, opening the door to a world market estimated to be in excess of 50 million vehicles."
More business with government and quasi-government organisations is also coming the group`s way.
"We conclude the half-year with distinctly better operating ratios than at year-end."
Vlok says the group is poised to grow its business and earnings sharply once the world economy picks up.
Revenue for the six months fell 12.6% from the year-earlier period to R80.44 million, although the group increased its operating profit before depreciation by 2%. Headline earnings per share were flat at 4.1c.
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