Recently listed Xantium is off to a good start, with an attributable profit of R5.82 million for its maiden six months to November.
Xantium, which listed last year on the JSE's alternative exchange, AltX, is a black-empowered IT service provider.
The company achieved earnings of R9.57 million before interest, tax, depreciation and amortisation and a pre-tax profit of R8.9 million. An after-tax profit of R6.07 million was achieved.
Headline earnings per share (HEPS) amounted to 4.63c and basic earnings came to 4.31c a share.
At the end of the period the balance sheet indicated a current ratio of 1.6, with current assets of R27.98 million and current liabilities of R18.04 million.
Xantium had a net asset value of 14.54c a share on 30 November, and a net tangible asset value of 10c a share. Cash resources at the end of the period amounted to R4.75 million.
CEO James Murray says IT spend is slowly recovering from the post-Y2K lull. "Although conditions in the IT sector remain challenging, an early-stage recovery has begun to replace post-Y2K scepticism," he says.
"In this light organic growth is projected for all of Xantium's existing businesses. In addition, the group will continue to grow by acquisition where appropriate to enhance its service and product offering."
He adds that the group's directors are confident of meeting the forecast HEPS of 7.25c for the year to May 2005.
Xantium is trading under a cautionary notice related to undisclosed negotiations. Its share closed at 57c yesterday, up 8c or 16.3% from Wednesday's close. It was trading unchanged this morning.
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