Durban-based software company InfoWave Holdings has declared a year-end dividend of 3.67c a share, 22% higher than last year`s 3c dividend.
With earnings and headline earnings per share of 5.87c for the year to end-February, this represents a dividend cover of 1.6 times, compared with 1.9 times on earnings and headline earnings of 5.66c for the previous year.
The JSE-listed group`s profit for the year was marginally up at R5.01 million, compared with R4.99 million for the previous year.
Specialising in software solutions using Oracle technology, InfoWave`s main focus is the sugar industry.
Revenue rose 8% from R31.85 million to R34.4 million, while profit from operations slipped from R7.43 million before interest to R6.76 million.
CEO Tiffany Dunsdon says the sugar and downstream business unit performed well in the period. "Operating margins reduced due to investments in growing direct staff capacity and transformation as well as skills development and quality assurance," she adds.
She says investments in additional sales and marketing capacity resulted in better CaneLab product sales.
While the core sugar business met its objectives for the year, and the custom-built solutions unit also performed well, Dunsdon says the DevMan unit underperformed expectations. DevMan is an application designed for medium- to large-scale residential property developments.
"We have consequently formed a black-owned company, InfraSoft, with strategic black partners who will add value to the solution and be dedicated to serving the public sector market," she adds.
With effect from 1 March, InfoWave has acquired a loan account of R14 million and an effective 63.8% stake in ApplyIT, a specialist in operational, health, safety, environment and quality management systems for the manufacturing sector.
The group originally bought 73.8% of the company and subsequently sold a 10% shareholding to two black empowerment investors.
InfoWave paid R500 000, with a further R8.6 million payable dependent on revenue growth targets being met.
Dunsdon says the group still has sufficient cash for further acquisitions and is in "early exploratory stage discussions of this nature".
InfoWave`s balance sheet recorded cash resources of R4.25 million at the end of the year.
"The prospects of the core business for the financial year ahead are healthy," she adds. "We will focus on the performance of ApplyIT to ensure its success, sustainability and contribution to the group."
The InfoWave share closed untraded at 72c yesterday.
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