Xantium Technology Holdings has reported results for its maiden year as an AltX-listed company, largely in line with the forecasts in its prospectus.
Revenue of R93.84 million was off the forecast R174.5 million, which CEO James Murray attributes to a change in the expected mix of product sales and solutions services.
"The increasing number of direct product sales between Xantium's international business partners and end-users adversely impacted on revenue," he says, adding that the company's commission participation in direct sales, as well as a change in focus to services, boosted profit margins.
Pre-tax profit of R15.99 million is just 1.7% off the prospectus forecast of R16.27 million, while attributable earnings of R10.83 million compares favourably with the forecast R10.19 million.
Headline earnings per share (weighted in issued and to be issued) amounted to 7.1c, roughly in line with the prospectus forecast of 7.25c.
The group had a net asset value of 36.32c per share and a net tangible asset value of -16.18c a share at the end of the period.
Xantium has been in the news for making several acquisitions since its AltX listing, which raised concern in some quarters. However, Murray says the acquisitions have been bedded down and this has allowed the company to continue operating as a seamlessly integrated group.
"The board will continue to investigate appropriate strategic acquisitions that will further enhance Xantium's capability and deliver additional shareholder value," he says, adding that the group expects to benefit from consolidation in the industry.
"Strategic focus on mining, financial services and telecommunications customers is expected to yield benefit for the group in light of the sectors' transformation charters. Xantium will at the same time continue to pursue opportunities in government to further consolidate its position as a leading supplier of consulting and IT services."
Rating agency Empowerdex calculated Xantium's black economic empowerment (BEE) ownership at 34.5% last year, with 67.7% effective BEE management control. Forty-five percent of employees are historically disadvantaged individuals, while 80% of executive management and 40% of middle management are historically disadvantaged.
"The group intends to focus on raising BEE participation at all levels of operation in the year ahead, with particular attention on executive board directors and middle management," Murray says.
Share
