MiX Telematics survives 'tough year'

JSE-listed vehicle tracking company MiX Telematics has increased its dividend payout, despite declining profit.

The company this morning released its results for the year to March. It said revenue had declined 12.3%, to R840 million, and headline earnings per share were 4.7% lower, at 10.1c. Adjusted headline earnings per share, which the company considers a better measure of its performance, dropped 19.5%, to 12.8c.

The recent strength of the rand cost the company R63 million in revenue and R18 million in earnings, which translates into about 3c a share. MiX Telematics operates in 111 countries. However, its bedrock - annuity revenue - gained 14% year-on-year, climbing to R477 million.

CEO Stefan Joss says the past year was “the toughest year in my business memory”. He is pleased that the company “navigated [it] relatively unscathed”.

Joss says market conditions were especially tough in the first half of the year. However, despite the decline in profits, the company increased its dividend 25%, to 5c, as it was strongly cash generative.

Although cash generation was marginally lower than last year, cash generated from operations came to R175 million, and the company reduced its net debt from R89 million in 2009 to R48 million.

Joss says the company's order pipeline at the start of the 2011 financial year is much healthier than it was 12 months ago.

MiX Telematics believes it has weathered the worst of the global meltdown, and has emerged in a stronger position and Joss is “excited about the future of the group”.

Its shares moved 3.85% lower to 100c on the back of its results.

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