Software and services group ERP.com Holdings has published an impressive set of figures for the year to 31 July 2002.
<B>Salient figures</B>
ERP.com Holdings results for the year to 31 July 2002
Previous year`s figures in parentheses, move in square brackets:
Revenue: R104.45m (R69.12m) [+51%]
Profit before taxation: R16.84m (R10.62m) [+59%]
Net profit: R11.65m (R7.56m) [+54%]
Attributable income: R11.17m (R7.52m) [+49%]
HEPS: 7.2c (4.7c) [+53%]
NAV per share: 17.7c (10.7c)
Current assets: R43.83m (R25.76m)
Cash and equivalents: R26.67m (R9.54m)
Current liabilities: R20.78m (R14.66m)
Cash generated from operations: R26.28m (R8.03m)
The results, released yesterday on the third anniversary of the group`s listing, show a 54% increase in net profit and a 53% surge in headline earnings per share. Revenue passed the R100 million mark for the first time.
ERP.com has also declared its first dividend and CEO Peter Forsyth says the policy from now on is to declare a dividend equating to 20% of headline earnings.
"We have exceeded all our forecasts, which is very important to us, and we are very excited going forward," he says.
He points out that the growth is purely organic. "We have chosen our technologies well and we have superb people. Our five subsidiaries are very focused on what they do, and focus is very important, especially when times are tough."
Forsyth says management was focused on providing growth in revenue, profit and cash, and all management decisions were taken with these objectives in mind.
Having completed three years on the venture capital market, ERP.com has now met all the criteria for transferring to the JSE`s main board, and is soon to make an application in that regard.
Commenting on the increase in capital and reserves from R17.4 million to almost R29 million, he says although it makes sense for the group to build up cash, it will also look at the possibility of making appropriate acquisitions.
The focus in the year ahead will be on continuing to grow the business organically while investigating new investment opportunities to ensure the group is positioned for an upturn in the IT sector, which Forsyth expects to take place in the second quarter of next year.
Although he says it is difficult to forecast the level of growth next year, he is expecting another good year. Growth will depend on trading conditions.
Forsyth says ERP.com is continuing to carry its JD Edwards business despite the fact that it is no longer a formal JDE partner.
The partnership ended acrimoniously earlier this year as a result of a disagreement over fees.
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