FoneWorx dials up triple digits

By Staff Reporter, ITWeb
Johannesburg, 21 Sept 2007

AltX-listed FoneWorx has delivered a strong performance for its full-year ended 30 June.

In a statement to shareholders, CEO Mark Smith notes the business increased revenue by 75%, to R58 million. Net profit before tax jumped by 376%, to R11.9 million, with net profit margin improving to 20.5% from 7.5% in 2006.

"This is essentially due to the automated systems being able to accommodate more transactions, with minimal need for additional capital or human resources," says Smith.


In the year under review, FoneWorx purchased a 50% share in a Randburg building for R4.25 million. These offices now comprise the company's head office and a "state-of-the-art" innovation and hosting centre has been implemented.

The cost of refurbishing the offices and installing the innovation centre came to R1.25 million.

FoneWorx also spent R700 000 on developing new products for its Virtual Business Centre, as well as a FICA/RICA enrolment and authentication service.

Smith explains: "As a group we are constantly trying to reinvent our business by developing new concepts, services and products. I believe there is tremendous opportunity in digital media, particularly with cellphones, the 'third television screen', outnumbering both television and PC screens worldwide. I also believe there is tremendous opportunity within our switching division to provide solid solutions for FICA/RICA and services to the unbanked markets."

Although FoneWorx believes it is well positioned for sustainable organic growth, it will "constantly" look at acquisitive opportunities to either enhance or fast-track its operating divisions.

Minutes after it posted its annual results, FoneWorx reminded shareholders it is still involved in negotiations that could impact its share price.

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