JSE-listed investment company MicroMega, which counts IT as one of its four core areas, has diversified its focus to grow its earnings base and double its income in the last year.
MicroMega yesterday told shareholders it doubled revenue and saw a 94% increase in net profit for the year to end-December. The company also says headline earnings grew 77%, net asset value rose 31% and net asset value increased 51%.
It told shareholders in December that it expected to see headline earnings per share (HEPS) between 65% and 85% higher than the HEPS of 18.86c for the 2005 financial year.
"During the year, MicroMega moved sectors from the financial to the support services sector," the company says. "This move was motivated by the entrenched strategy to focus on earnings growth from a broader base of income generators, with less reliance on any specific sector."
<B>Fast figures:</B>
MicroMega full-year figures to end-December
Previous period in brackets
Revenue: R318m (R159m)
Pre-tax profit: R45m (R21.7m)
Net profit: R30.9m (R15.3m)
HEPS: 33.45c (18.86c)
Current assets: R122m (R98m)
Current liabilities: R54.9m (R56.6m)
The company says the new strategy aided organic growth while shielding earnings against risk in any one sector. The firm's two IT companies, Intermap and Sebata Municipal Solutions, contributed 16% to total headline earnings.
MicroMega says it is confident of earnings growth going forward. "We do, however, believe that there are opportunities to acquire businesses that are complementary to our current operations and that will make a significant contribution to our growth in earnings per share."
The company's shares closed unchanged at 295c yesterday. Its 12-month high is R4.20 and its 12-month low is R2.50.
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