Labat Africa has increased revenue by 48% and headline earnings by 32% in the six months to 31 August.
<B>Salient figures</B>
Labat Africa results for the six months to 31 August 2002.
Year-earlier figures in parentheses:
Revenue: R145.26m (R98.08m)
Net operating income before interest and tax: R22.25m (R17.52m)
Net income before tax: R17.8m (R14.66m)
Net income after tax: R27.03m (R14.12m)
Attributable income: R26.99m (R13.06m)
Headline earnings: R17.25m (R13.06m)
HEPS: 9.3c (7.1c)
Current assets: R188.73m (R149.92m)
Cash: R35.37m (R14.79m)
Current liabilities: R87.66m (R82.02m)
NAV per share: 80c (53c)
Net flow from operating activities: R10.15m (R12.05m)
"The first six months of the year have been exceptionally good for the company," says CEO Brian van Rooyen.
"Each of the business units has performed well and is positioned for further growth."
He says while management has focused on the development of the four core businesses, "we anticipate that the past phenomenal growth will not be mirrored in the full-year-end results".
Sames performed well during the period, benefiting from expanding markets in India and China, as well as from new product sales.
Van Rooyen says product piracy has become a problem and the company`s microchips are being copied in some markets. Steps are being taken to combat this threat.
Labat Traffic Solutions has increased to six the number of contracts that are fully implemented and is on its way to being a comprehensive solutions provider to municipalities.
Van Rooyen says Labat Management Consulting has tendered with various skilled partners for a wide range of technology-backed projects which it is well positioned to win.
The furniture retail business, Labat Retail, missed the operating profit target by R0.9 million, directly related to self-imposed restrictions on credit granting. The industry as a whole has been under pressure, he says.
"The recoverability of the selling price of our investment in Armada continues to be a problem. We sold the company but have never been fully paid by the purchasers."
While the outstanding R5.4 million has been fully provided for, the group is in the process of regaining its assets and believes it will regain at least the value provided for.
"As part of ongoing performance improvement we are looking at restructuring the various businesses in order to capitalise on current opportunities. Discussions are currently taking place with several parties who are interested in partnering with us to pursue major initiatives."
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