JSE-listed Fintech has reported its first interim results since restructuring itself and unbundling its stake in Bytes Technology Group (BTG).
Fintech has restructured as a focused financial services business concentrating on financing office automation and IT equipment and security systems.
<B>Figures at a glance</B>
Fintech results for the six months to 31 August 2001
Figures for the six months to 31 August in parentheses:
Revenue: R95.84m (R712.91m)
Continuing operations: R95.84m (R75.99m)
Operating income: R30.36m (R66.5m)
Continuing operations: R30.36m (R34.6m)
Attributable income: R20.29m (R36.64m)
Continuing operations: R20.29m (R22.94m)
HEPS: 16.1c (32c)
Continuing operations: 16.1c (19.4c)
Current assets: R72.6m (R517.52m)
Current liabilities: R137.09m (R359.34m)
NAV per share: 137.3c (336.7c)
On a continuing operations basis, headline earnings per share for the six months to 31 August 2001 fell 17% from the same period the previous year, although chairman David Redshaw says the results are not comparable because of the restructuring.
The restructure involved the distribution, in specie, of Fintech`s shares in BTG to Fintech shareholders.
"This distribution of approximately 3.18 billion shares was valued at approximately R476 million and the net result of the restructure was a R176 million reduction in the group`s cash resources."
Redshaw says that had a similar gearing structure been in place for the same six months last year, headline earnings per share would have been 13.7c for that period instead of the reported 19.4c.
He adds that the momentum established three years ago in expanding the business into a broader customer base has been sustained, with capital financed increasing by 14.2% during the six months.
Technology Acceptances, which focuses mainly on the Altron Group customer base, increased its capital financed to R691 million from R648 million at 28 February 2001, with earnings slightly down on last year, he says.
"Corporate Finance Solutions and Spartan Computer Rentals - the 50/50 joint venture with arivia.kom - both achieved exceptional growth in capital financed, revenue and earnings."
Redshaw says that gearing, at 4.4:1, still provides the business with the opportunity to further increase its borrowings, which it plans to use to continue its planned aggressive growth.
"The directors are currently evaluating the strategic direction and consequent capital structure of the group.
"Growth in capital financed in the second half of the year is not expected to be at the same rate as in the first half of the year, given the current uncertainty in market conditions."
He says while earnings are expected to show a further improvement in the second half, the expectation should be seen against the potential effect of the US terror attacks on global economies.
The Fintech share price was unchanged at 230c on the JSE by midmorning today.
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