AltX-listed telecommunications value-added service provider FoneWorx has reported "record-breaking" results for the year ended 30 June 2008.
The group says its earnings before net interest, tax, depreciation and amortisation improved to R19.8 million (2007: R13.1 million), an increase of 51%, and profit before tax was R20 million (2007: R11.9 million), an increase of 67% compared to the previous year.
Earnings per share grew by 65%, to 13c per share, from 7.89c per share in the previous reporting period. Headline earnings per share grew 56%, from 8.2c per share in the previous period, to 12.75c per share.
Gross profit was R39 million (2007: R30.5 million), which is 55% of revenue (2007: 52%). Profit for the year improved by 65%, to R14.9 million (2007: R9 million). Profit for the year has increased by an average of 159% per annum over the past four years.
During the year under review, the net asset value of the group increased by 212%, from R17.2 million (15.1c per share), to R53.6 million (39.9c per share).
According to the company, during the period under review, it concluded a BEE transaction with Kabo Capital, with Kabo now holding 30% of the FoneWorx group.
The company says the R21.6 million of the growth in net asset value during the year under review relates to the cash received from the issue of 20 330 612 shares on 23 June 2008, to Kabo. The increase in net asset value, without taking into account the issue of the shares to Kabo, is 86%.
Looking ahead, the company expects that most of its growth will be organic, but management will constantly look at acquisitive opportunities to either open new revenue streams or fast-track operating divisions.
"We look forward to the contribution that Kabo will make in working with us at a strategic level and we welcome them on board," FoneWorx says in a statement.
The group says it has developed its own technology platform for the purposes of hosting its various operating divisions. It has service provider agreements with Telkom, MTN, Vodacom and Cell C.
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