A buoyant ERP.com, which says it will exceed its forecasts of 25% earnings growth for its current financial year, is planning to move its listing to the JSE`s main board.
"I don`t know anyone who has spent three years on the venture capital market before moving to the main board," says CEO Peter Forsyth. "We have paid our dues."
<B>Salient figures</B>
ERP.com results for the six months to 31 January 2002
Figures for the year-earlier period in parentheses:
Revenue: R57.29m (R33.74m)
Pretax income: R8.34m (R4.5m)
Net attributable income: R5.84m (R3.15m)
HEPS: 3.7c (2c)
NAV per share: 14.4c (8.1c)
Current assets: R37.31m (R21.12m)
Current liabilities: R20.81m (R13.34m)
Cash and equivalents: R18.02m (R7.11m)
He says the group had to spend the time in the venture capital sector as it was a start-up with no history. "But we will qualify [for a main board listing] so it makes sense for us to be there."
Commenting on the group`s results for the six months to 31 January 2002, Forsyth says there has been an improvement in spending patterns, which the group began experiencing a year ago.
"I must admit, though, that the first period has exceeded our expectations, and each of our five divisions has performed well. They are very focused companies, and we have matured as a group."
The results include for the first time the performance of the PeopleSoft business, which was acquired last year. Forsyth says PeopleSoft is profitable and performed very well in the period, contributing 20% of group revenue.
He adds that the vendors have been pleased with the transition, and the European, Middle East and African arm of PeopleSoft is examining the local business model with a possible view to roll it out globally.
ERP.com has increased its cash holdings significantly, and Forsyth says while the right opportunities are scarce, the group will be looking at strong acquisitions as well as new technologies.
"We would like to move more into systems integration. We are involved in that area already, but I would like to formalise it." The group works already with companies such as Dimension Data and AST, but Forsyth says it also operates in areas not within those companies` focus.
Although the group forecast at the last year-end that it would grow earnings per share at least 25% for the current financial year, Forsyth says this will "definitely" be exceeded.
The ERP.com share closed at 33c on the JSE yesterday, 1c up from the previous close.
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