Global Technology (Glotec), which provides software solutions to the financial services sector, lifted attributable income almost 77% in the six months to 31 December despite a Y2K-induced postponement of new contract signings.
Chairman Peter Springett says although the postponement resulted in less business than expected, Glotec increased turnover and profits, and the company expects to achieve its year-end profit objectives comfortably.
Revenue increased to R128.1 million from R110.6 million in the same period in 1998, while operating income before depreciation (of R1.8 million) rose from R14.8 million to R16.7 million.
Attributable income jumped to R10.1 million from a previous R5.7 million. Headline earnings per share were lifted from 3.2c to 4.1c.
During the period Glotec entered the Asia-Pacific region in a joint venture with Netherlands Antilles company Temenos Holdings, taking a controlling stake in Australian banking software distributor Solace.
Springett says Glotec and Temenos, in which Glotec acquired a stake in January last year, have identified "exciting opportunities for future expansion together into the South American market".
During the period under review, Glotec bundled its commercial and industrial interests into a separate entity in partnership with Intelliware, a software company specialising in commercial and industrial solutions.
"Intelliware has management control of the new company, leaving Glotec free to focus strongly on its core business areas of banking, insurance and business intelligence," says Springett.
After the close of the interim period, Glotec sold its indirect 44.5% shareholding in BCS-Net, in line with its stated intention of being a solution provider, with a stronger focus on services than bandwidth development.
Springett adds that prospects for the second half are good, with improved performance from all divisions anticipated.
"Glotec is very active in the e-commerce arena, and a number of exciting developments in Global Technology Services` e-commerce offerings ensures that the group is well poised to take advantage of the expected growth in this area," he says.
Related stories:
Glotec acquires Australian-based Solace
Solace Australia re-lists after administration period
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