Fleet management company Digicore now has the highest level of guaranteed sales income it has yet experienced. This is thanks to the fact that several large tenders it has won are to be rolled out over the next three years.
CEO Nick Vlok says indications from several research companies point to rapid growth for the group's industry over the next five years and Digicore believes it is well placed to benefit.
Digicore develops, manufactures, sells and supports GPS/GSM fleet management and vehicle tracking solutions and has operations both in SA and abroad.
The group this morning reported a 36% increase in revenue, to R440.67 million, for the year to end-June, compared with the previous year and, with margins remaining constant, a 37% increase in attributable profit, to R88.13 million.
"Achieving a 37% growth in earnings per share, while still building new markets, was remarkable," Vlok comments.
He says the group also secured tenders from several blue chip companies, including BHP Billiton and the South African Police Service, to be delivered in the coming year.
The group's cash balance slipped to R59.2 million, from R64.8 million at the half-year stage. Vlok says this is because of an increase in tax and dividend payments, as well as an increased requirement for working capital to fulfil large orders received in June and expedited only in July.
During the year, Digicore bought out the 49% minority shareholding in its European subsidiary for R61.14 million.
Vlok says owning 100% of the subsidiary will allow a planned strategic expansion programme in the area.
The Digicore share closed unchanged at R7.90 on the JSE yesterday, giving the group a market capitalisation of about R1.6 billion. The share has gained 117.6% year-on-year, although it is 4.2% down on a week ago.
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