JSE-listed IST Group has completed its turnaround process in the year to February 2002, despite facing tough market challenges.
CE Harry Coetzee says all the divisions operated profitably during the year and are well positioned for further growth.
<B>Salient figures</B>
IST Group results for the year to 28 February 2002
Figures for the previous year in parentheses:
Turnover: R279.26m (R222.56m)
Operating profit: R23.43m (R17m)
Profit before tax: R32.83m (R16.9m)
Profit after tax: R23.21m (R10.71m)
Net profit: R21.45m (R10.45m)
HEPS: 17c (8.2c)
NTAV per share: 88.9c (70.5c)
Current assets: R133.28m (R104.44m)
Cash and equivalents: R53.85m (R28m)
Current liabilities: R61.05m (R46m)
Dividend per share: 6.2c (3c)
Cash generated from operating activities: R42.51m (R18.97m)
"With the completion of the recovery process, we were able to start focusing the group on a new path during the past year," he adds.
"The main emphasis is still on strengthening the position of our businesses in their existing markets, through organic expansion as well as acquisition, but the prime driving force of these businesses is now the dynamics of those markets rather than our own technologies.
"In essence, we are working hard to change IST from an inwardly-oriented organisation into a technology-based marketing business with a strong external focus."
Last month shareholders approved a new share option scheme aimed at enhancing the group`s relationship with its existing empowerment partners through Aka Capital.
"The South African parastatal sector is a major market for IST and it is therefore one of the group`s key strategic objectives to maintain a substantial empowerment component in its shareholder base," Coetzee says.
Coetzee says the group is maintaining a flexible approach to its R54 million cash resources, with a view to possible acquisitions. Cash almost doubled during the year despite share buybacks which cost the company almost R12 million.
IST`s growth strategy is not aimed at diversifying the group but at strengthening the position of its existing businesses in their current markets and, where possible, at increasing hard-currency revenues.
"Market conditions remain volatile but all our operations are firmly positioned to sustain their sound performance of the past year."
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