Faritec Holdings increased its headline earnings per share by 4.7% in the year to 30 June 2001, a period characterised by tough trading conditions and a rebuilding exercise, it says.
<B>Figures at a glance</B>
Faritec Holdings results for the year to 30 June 2001
Previous year`s figures in parentheses:
Revenue: 273.72m (R203.27m)
Operating profit: R12.73m (R13.16m)
Income after tax: R12.5m (R8.86m)
Attributable earnings: R12.79m (R8.82m)
HEPS: 9c (8.6c)
Cash and equivalents: R76.93m (R64.25m)
Current assets: R151.73m (R96.62m)
Current liabilities: R84.6m (R40.27m)
NAV per share: 58.2c (48.6c)
CEO Simon Tomlinson says the rebuilding and restructuring exercise has been completed, and the group`s strategy and focus for the future is to provide managed business and technology infrastructures.
He says the earnings growth was achieved despite a difficult trading period for the IT industry and the economy overall, and adds that prospects for the future are positive.
While revenue grew 34.7% during the period, margin pressures saw a decline in operating profit. MDS`s margins are also not at a desired level.
"The results of Midrange Distribution Systems, Faritec`s joint venture with TCM into central Africa, have been included in Faritec`s results for the first time," Tomlinson says.
"Of the increase in revenue, MDS contributed R32 million, while the other Faritec operations increase turnover by 19%.
"Our infrastructure solutions business had a better year than 2000, with strong growth, and we continue to be a leader in the midrange server and storage markets.
"The focus on large complex solutions has allowed us to differentiate ourselves over our competitors and demonstrate our value-add to our customers."
He says the outsourcing business is continuing to grow, and the investment in outsourcing has resulted in a number of large new contracts.
"The 2001 financial year has been a development year for Faritec as a whole," he adds. "Investments are likely to prove their worth in steady growth in the year ahead."
The company has invested in Inter Company Processes, building on Faritec`s core competencies in hardware and related service provision.
"We envisage the next wave of IT opportunity to continue to focus on solutions around e-business and processes. This investment and our expertise in hardware and service provision will assist us in creating new annuity revenue streams and set the scene for sustainable growth," Tomlinson says.
He adds that the group still expects to show growth in earnings and operating margins despite the start-up costs of its recently launched e-commerce business.
The Faritec share price was unchanged at 43c on the JSE early this morning.
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