Foneworx Holdings is looking forward to its next financial year and is confident its two new divisions will provide new sources of income for the group.
The company yesterday released its year-end results for the period to June. It reported revenue up 15.9%, to R91.9 million, and net profit gained 10.8%, to R20.1 million. Cash in the bank also improved, going from R60.2 million to R74.1 million.
Shareholders reacted positively to the results, with Foneworx shares moving 3.16% higher to close at 98c. Foneworx says it is “confident about the outlook” for the year to June 2011 and is “especially positive about the prospects of IDWorx and CarbonWorx”.
Foneworx has five operating entities, including BizWorx, which focuses on business-related products, and MediaWorx, which provides information and entertainment services. In development and piloting are CarbonWorx, DRWorx and IDWorx.
CarbonWorx allows companies to track carbon emissions created through operating, such as flights, and then offset these through various activities. DRWorx is a niche disaster recovery and workflow continuity solution for the stock broking fraternity, while IDWorx provides identity verification services to corporate and governmental institutions.
During the year, Foneworx refined its offerings for its three newest operating divisions: IDWorx, DRWorx and CarbonWorx.
The company anticipates that these divisions will provide new revenue streams for the group and open up new channels to take advantage of previously untapped sectors of the economy.
It says the capacity to grow these new divisions is based on a standardised technological platform the group has developed over the past 14 years.
Financial director Pieter Scholtz explains that the company aims to expand its client base and offer its services to larger corporations, in addition to the retail and small and medium sectors it currently supports.
Scholtz says Foneworx “tries to fish in many ponds” and expects its traditional business units to continue providing the bulk of revenue growth for some time. However, he adds that in the next two to three years, the new divisions will have significant growth rates and play an important role in the long term.
Scholtz adds that the company has bolstered its staff complement from 50 to 62, which will enable it to drive future growth.
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