Stella Vista, the JSE-listed multimedia communications company, has turned in interim results reflecting solid growth. However, the group continues to search for lucrative offshore opportunities.
Group turnover for the six months to February grew 85% to R22.2 million from R12 million, surpassing the R21 million achieved for the full 2000 financial year.
Net profit after taxation of R2.8 million was achieved, reflecting a growth of some 43% on the R1.9 million turned in for the comparable period.
Headline earnings per share rose to 1.94c, compared to 1.36c for the 2000 period.
Delays on large contracts that thwarted expectations for the 2000 financial year have been resolved and Stella Vista has rolled out LED (Light Emitting Diode) display screens to Forecourt Television Network (FTN) which can be seen at petrol service stations around the country.
CEO Muris Tabakovic says the smaller increase in earnings was largely due to lower margins on the FTN contract as well as the costs incurred in setting up and maintaining an office in Pasadena, California.
Commenting on future prospects for the company, Tabakovic says the local market is tight at present.
"There has been significant local growth in outdoor advertising and electronic displays. People in the international industry comment that SA has one of the most developed electronic outdoor media markets in the world.
"However, the market for really high quality displays is restricted by economic considerations as the price of imported components, particularly LEDs, is affected by worldwide demand and currency issues.
"For this reason, we have expanded our operations to the US and opened an office in California. Initial results are encouraging and we have received a number of enquiries. We are also exploring possible alliances in Europe and elsewhere. We believe that future growth will come predominantly from these areas."
The Stella Vista share price has been trading under 30c for some time, fluctuating between 25c and 29c.
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