IT services company InfoWave Holdings has reported a profit of R5.94 million for the year to 28 February, up 30.9% from the previous year. Turnover climbed 7% to R28.79 million.
Describing the period as a good year for InfoWave, executive chairman and MD Ralph Collis says profitability remained satisfactory at 21% of turnover.
This is despite increased investment in quality assurance programmes, research, training and performance-based reward aimed at staff retention.
Collis says the after-tax profit was driven by an increase in interest income from R663 560 to R1.3 million, as well as the creation of a deferred tax asset.
Headline earnings per share rose by 27% from 5.32c to 6.76c and a dividend of 3c a share has been declared.
Collis says the company expects further growth and profit in the current year.
<B>Salient figures</B>
InfoWave Holdings results for the year to 28 February 2003.
Previous year`s figures in parentheses, move in square brackets:
Revenue: R28.79m (R26.9m) [+7%]
Profit from operations: R6.01m (R6.02m) [-0.1%]
Profit before tax: R7.31m (6.67m) [+9.4%]
Profit for the year: R5.95m (R4.54m) [+30.9%]
EPS: 6.76c (5.24c) [+35.8%]
HEPS: 6.76c (5.32c) [+27.1%]
Current assets: R12.36m (R14.34m)
Cash resources: R8.5m (R10.74m)
Current liabilities: R4.9m (R3.68m)
NAV per share: 9.23c (12.59c)
During this year the board aims to implement new technology standards to ensure competitiveness in a maturing Internet-based corporate market.
It also plans to grow market share in the sugar industry sector and pursue opportunities to enable reuse of InfoWave`s intellectual property.
Collis says that other plans for the year include increasing annuity revenue based on the principle of long-term partnerships with customers.
The InfoWave share price was unchanged at 20c on the JSE by midmorning.
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