JSE-listed ICT group Spescom has continued on its path to financial recovery, posting improved results for the 2007/8 financial year.
The company, which delivers integrated business communication solutions, reported its operating profit for the year increased to R16.2 million, from R4.2 million in 2007.
Headline earnings per share surged 49.1%, to 10.3c, while cash generated by operating activities amounted to R47.3 million.
CEO Jene Palmer says one of the highlights of the past financial year has been Spescom's ability to maintain its positive momentum during the year, translating into higher headline earnings and increased cash on hand.
“We continued to gain market share, with Spescom DataFusion and Spescom DataVoice delivering strong revenue growth of 40% and 25%, respectively.”
The company's return to profitability - after reporting a loss of R1.5 million in 2006/7 - has been driven by deals with new and existing blue chip customers, including work procured in the contact centre business. The company says its focus on core competences in business communications solutions and services is paying off.
“The market drivers are still strong,” says Palmer, adding that the company has not really been affected by the global economic downturn.
Future growth
She adds that there is no doubt the recent turmoil in the global financial markets, which has far-reaching economic impacts, has introduced uncertainty into the domestic economy.
“Our market positioning lends itself to implementing solutions that deliver the efficiencies and competitive advantages that our customers require, particularly in recessionary periods,” continues Palmer. This, she says, is an advantage for the company, as customers are likely to turn to its solutions to streamline costs and operations.
This means the company is geared for future growth, she notes. “While discretionary technology spend will come under pressure, our locally developed products are relatively insensitive to currency fluctuations and our scalable solutions present further cost benefits to our customers.”
Spescom DataVoice continued to deliver on its local engagements and more than doubled its international profitability, after the successful restructuring of the division in the previous year.
Spescom DataFusion showed increased revenue growth for the financial year, as it delivered on several significant deals from large corporates in the retail, financial services and media sectors, the company reports.
Spescom says there is an ongoing constraint on specialist technology skills, which impacts all players in the ICT industry. “The ability to manage our talent is crucial to the long-term growth of the group. Our skills pool provides us with a definitive advantage in the market,” explains Palmer.
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