Faritec Holdings achieved headline earnings of 0.9c a share for the six months to December, compared with a loss of 0.9c a share for the same period a year earlier.
Revenue rose from R183.23 million to R204.35 million, while a previous operating loss of R1.66 million was turned around into a profit of R2.11 million.
The group was also aided by a R5.06 million profit on the disposal of the contracting business to Paracon Holdings in October. A net profit of R5.07 million compares with a prior-year loss of R2.88 million while attributable earnings of R4.65 million compares with a loss of R1.19 million previously.
The bank balance recorded on the balance sheet rose from R8.72 million to R11.32 million. Cash flow of R11.81 million from operating activities amounted to R11.81 million (2003:R1.46 million). Cash flow of R3.86 million (negative R11.31 million) from investments included the profit on the contracting business and a R1.1 million investment in new equipment.
CEO Simon Tomlinson says the company`s new strategy, transformation and investments are starting to show the expected returns.
The revenue mix is becoming more balanced, with software and services representing 45%, compared with 32% the previous year. "This improvement creates a more predictable revenue stream and higher operating margins," Tomlinson says.
He says the disposal of the contracting business was part of a process of shedding non-core operations that will continue in future.
"The outlook for the next six months is positive and management expects to show further movement and growth."
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