Spescom back in the black

By Kimberly Guest for Spescom

Johannesburg, 23 Nov 2007

JSE-listed Spescom has delivered a bottom line profit in its 2007 financial year. This is a marked improvement on the R18 million headline loss produced in 2006.

However, recently promoted CEO, Jen'e Palmer, refused to be drawn on what the market can expect to see in the coming six to 12 months.

"We do believe we can grow from this base. More than that, you are going to have to wait and see," she told analysts.

Right direction

Palmer stressed that the company`s key indicators are moving in the right direction.

Revenue for the year increased 88%, to R380 million; headline earnings saw a R23 million turnaround to a R5 million profit; and the company`s total debt declined from R40.2 million in 2006, to R32.3 million.

"You can be very quick to destroy something, but it takes far longer to restore that to its former glory. Our trends are on the way back up again, but we`re taking it one step at a time," she said.

Right mix

Palmer said Spescom`s solutions and offerings meet upward trends in the market.

"The South African contact centre market continues to post good growth. There is a general increase in demand for managed services. Telecoms investment in infrastructure has seen a marked intensification over the last year. And the media industry is buoyed by 2010 opportunities and the entrance of new licences," she explained.

As the company is positioned to deliver to these markets, Palmer said no significant changes were expected in the coming year.

"We`re pretty much going to keep on exercising the operational and financial strategies that enabled our turnaround."