Scientific and analytical technology group Set Point says its order book is looking favourable for the new year after political and climatic disruptions early last year.
The company says the Digital Control Technology division, which was the worst affected by deferred contracts with a R12.9 million pre-tax deficit last year, has signed up R35 million in orders from September to November 2000.
In addition to the resumption of delayed business, the division is reportedly also benefiting from the expansion in key areas of SA's mining sector as certain mineral prices are rising on world markets.
"The bulk of the new business is within SA's borders, which is encouraging in the sense that our public and private sectors are showing increasing commitment by investing at home - something they have often been criticised for failing to do in the recent past," says group MD Dave Kitchen.
"However, equally encouraging from our point of view is the increase that we, as a group, are enjoying in export contracts, with our foreign order book rising some 50% over the same period a year ago. This emphasises the growing global acceptance of Set Point's capabilities," says Kitchen.
Set Point reported revenue of R331 million for the year ended 31 August 2000 (1999: R319 million). Net income for the year amounted to R7 million (R35 million). Headline earnings per share were 5.8c (20.0c).
"The tough times that the Southern African contracting sector has experienced in 1999/2000, with floods delaying the award and implementation of contracts and political instability near our borders deterring overseas investment in the region, has had one silver lining - the competitive-edge offered by a cheap rand," says Kitchen.
"While overall conditions remain tough, the delayed start-up in contracts is promising for selective businesses within the sector and within our group, and we look forward to a potential upturn."
The news appeared to allay market concerns and the Set Point share was trading up 2c or 8.7% at 25c shortly after markets opened this morning.
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