Control Instruments grew its bottom line in the six months to end-June thanks to a focus on niche and specialised market segments.
<B>Salient figures</B>
Control Instruments results for the six months to 30 June 2003.
Year-earlier figures in parentheses:
Revenue: R174.54m (R153.87m)
Profit from operations: R11.18m (R9.13m)
Net profit: R13.27m (R5.76m)
EPS: 16.95c (6.51c)
HEPS: 19.3c (7.51c)
Current assets: R84.55m (R82.93m)
Cash and equivalents: R3.92m (--)
Current liabilities: R69.41m (R65.76m)
NAV per share: R1.02 (R0.87)
Cash generated from operations: R7.27m (R11.07m)
This is despite the strong rand and continuing turbulence in the global automotive industry, says MD Richard Friedman.
Revenue for the period rose by 13.4% to R174.54 million while profit from operations grew 22.5% to R11.18 million. The group achieved a 130.5% increase in net profit to R13.27 million, while headline earnings per share were 157% higher at 19.3c.
Friedman says the group continued to invest in the development of products in which it owns the intellectual property and additional senior management and engineering staff were appointed.
"The short-term effect of this has been a disproportional increase in operating expenses during the six months. However, the medium and longer-term effects will be the introduction of new products and services and a strong staff complement for future growth."
Friedman says Control Instruments` positioning in its market means prospects for the second half of the year are good, despite current difficult industry and economic conditions.
"A new and technically advanced vehicle and fleet telematics product, which has been undergoing market testing during the first half of the year, will be launched commercially in SA during the third quarter and globally in the last quarter of 2003," he says.
The Control Instruments share was trading at 90c on the JSE this morning, up 10c from yesterday`s close.
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