Information security solutions firm ISA Holdings has broken through the R60 million turnover mark for the first time, but its gross profit margins declined.
ISA Holdings on Friday reported a slight turnover gain to R63 million in the year to February, from R59 million from a year ago, while total comprehensive income declined to R12.9 million from R13.6 million.
In a statement issued by the company, it says the results were “satisfactory in light of the increasingly challenging landscape in which we operate”. The company says it continues to focus on composition of revenue to look at recurring income and higher profit service sales.
Earnings before interest, tax, depreciation and amortisation declined 2%, to R19.3 million, but earnings per share and headline earnings per share only lost 2.8%, to 7c a share.
“An exciting aspect of our numbers was that turnover finally broke through the R60 million milestone for the first time,” it says. However, ISA says its gross margin, which dropped to 48%, compared with 52% a year ago, was “less exciting”.
The margin decline was due to a contraction in services revenue, it says. Product margin remains under pressure year to year.
ISA says it is convinced there is an economic recovery under way, although this is taking place over a longer-than-expected period. “Vigilant cost controls, innovative offerings and a persistent focus on service delivery remain our priority.”
The group says an essential part of its longer term growth strategy is an investment in organic growth, where it can build and enhance its existing capabilities.
“The key drivers of the IT security market remain robust and we are well positioned to benefit from this. The continued evolution of threats and attacks against organisations, together with the increased regulatory and legislative compliance requirements, continue to elevate the importance of IT security within organisations.”
During the year, the final leg of its empowerment deal with EmpowerGroup was concluded and the balance of the empowerment firm's interest-bearing loan was credited to the company's share premium account. This amounted to R3.9 million.
Share
