JSE-listed Faritec has reported growth in all its major business areas in the six months to 31 December 2001.
"Our company has seen continuous growth over the past year and our interim results are a true reflection of the business possibilities available in SA," says CEO Simon Tomlinson.
<B>Salient figures</B>
Faritec Holdings results for the six months to 31 December 2001
Figures for the year-earlier period in parentheses:
Revenue: R152.24m (R118.08m)
Operating expenses before depreciation: R141.52m (R112.9m)
Profit from operations: R9.8m (R4.26m)
Profit before tax: R10.46m (R5.14m)
Attributable earnings: R8.25m (R4.52m)
Headline earnings: R277.9m (R137.1m)
HEPS: 6.2c (3.2c)
Cash flow from operating activities: R6m (R4.65m)
"Strong organic growth in our core business augmented by the integration of key initiatives and joint ventures contributed materially to our quality earnings growth."
The group is congratulating itself for growing revenue by 29% and attributable earnings 82% against the background of difficult trading conditions in the IT industry and limited economic growth.
Operating profit increased by 130%. Tomlinson says operating expenses, salaries and depreciation increased, but this was offset by better margin control, reflected in improved operating margins from 3.6% to 6.4%.
Headline earnings per share (EPS) adjusted for goodwill amortisation increased by 94%, while basic EPS grew by 88%.
Tomlinson says an increase in trade receivables to R70 million is due to the finalisation of several sizeable infrastructure solution contracts at year-end which were settled only in January 2002. "This has been financed primarily by trade payables," he adds.
The new e-commerce initiative, Faritec ICP, is progressing according to the business plan and is working on a project with Microsoft that the company says has the potential to revolutionise the way business-to-business electronic invoicing presentation and payment is performed.
"Faritec is well positioned to take advantage of the growth opportunities in the market," Tomlinson says. "The performance over the next six months is underpinned by strong prospects and solid recurring revenues.
"We expect steady growth out of our existing operation and various initiatives that are on track to add to the group`s revenue streams in the future.
"Faritec will continue to explore new offerings, markets and business model opportunities - an absolute imperative in sustaining the group`s ongoing competitiveness and associated financial strength."
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