A recent acquisition accounted for half of InfoWave`s revenue growth, while some divisions reported losses.
The JSE-listed software development company`s results, for the half-year to end-August, reflect that revenue grew 46.8% year-on-year, reaching R26 million. ApplyIT, which was acquired with effect from 1 March, contributed R4.1 million to revenue in the half year. This accounted for half of the growth in revenue.
InfoWave Holdings, listed in the computer services sector of the main board of the JSE, operates through its subsidiary companies. These are InfoWave, InfoWave Internet Solutions, ApplyIT and InfraSoft Technologies. It also holds 33% of AdaptIT.
It intends to continue growing organically and by acquisition in the "niche software products space".
<B>Fast figures:</B>
InfoWave figures for the six months to end-August
Corresponding period in parenthesis
Revenue: R25.96m (R17.68m)
Pre-tax profit: R4.2m (R3.75m)
Profit: R2.49m (R2.35m)
Headline profit: R2.64m (R2.35m)
Headline earnings per share: 3.05c (2.76c)
Both InfoWave and InfoWave Internet Solutions performed "well" during the half-year, as revenue grew 23.6% and profit after tax grew by 21.7% on the back of "strong demand for project work".
ApplyIT contributed a loss of R150 000 to the group, a "significant improvement over its historic performance prior to its acquisition". InfoWave says the improved performance "is in line with the group`s projection on which the investment was based".
Its start-up company, InfraSoft, which markets the DevMan product to the public sector, underperformed, it says. This was contrary to expectations and chalked down to longer than expected sales cycles. The division made a R200 000 loss.
"The market has expressed very positive sentiments about the product and increased focus is being placed on closing the sales opportunities," says the company.
AdaptIT performed above expectations and its share of profits before tax grew by 480% to R500 000. AdaptIT focuses on the public sector.
The company`s cash resources had dropped by R1.9 million since the end of the year, mostly as a result of its investment in ApplyIT, says InfoWave.
Its shares closed unchanged yesterday at 55c after reaching an intra-day high of 56c. Its 12-month high is 72c and its 12-month low is 47c.
Related stories:
InfoWave raises dividend
InfoWave on acquisition trail
Share
