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DigiCore exceeds forecasts, says outlook positive

By Iain Scott, ITWeb group consulting editor
Johannesburg, 25 Sept 2001

Fleet management and IT company DigiCore Holdings exceeded its forecasts for its third year as a listed company and says the outlook for the future is positive, especially given offshore opportunities.

<B>Figures at a glance</B>

DigiCore Holdings results for the year to 30 June 2001
Previous year`s figures in parentheses:

Revenue: R308.5m (R97.27m)
Operating profit before depreciation: R44.6m (R8.14m)
Attributable earnings: R23.12m (R1.04m)
Headline earnings: R25.9m (R1.04m)
HEPS: 10.82c (0.46c)
Current assets: R84.74m (R58.95m)
Current liabilities: R34.47m (R30.37m)
NAV per share: 38.7c (29c)
Cash generated by operations: R49.43m (R8.7m)
Cash flow from operating activities: R42.97m (R1.75m)

Executive deputy chairman Nick Vlok says the group increased revenue for the year to 30 June 2001 by 217% over the previous year, despite problems in the transport industry.

The transport industry was affected during the period by lower consumer demand, continual fuel price hikes and persistent payload overcapacity aggravated by low transportation rates.

Vlok says the revenue increase reflects the completion of phase one of the five-year debis Fleet Management contract, worth R150 million.

"Phase two is now in progress, resulting in a steady revenue stream from deinstallation, reinstallation and maintenance of C-Track units in the outsourced Telkom fleet."

Exports accounted for 15.5% of all C-Track units sold during the period, and Vlok expects a significant increase in the coming year.

He adds that, discounting the debis Fleet Management contract, DigiCore maintained its market share in a competitive sector without sacrificing sales margins.

"DigiCore`s key business objectives and strategies during the review period were geared towards reprofiling the company as SA`s foremost provider of fleet management systems solutions.

"DigiCore has completed an extensive business optimisation process, streamlining the business and instilling teamwork between our business units, resulting in improved efficiencies and enhancing customer satisfaction."

Vlok says the outlook for the new financial year is optimistic, given the increasing opportunities in Europe and the 50% stake acquired in DigiCore Europe (previously C-Track Europe).

New sales strategies have increased the opportunities the market various products.

"DigiCore is a capable enterprise and we are confident the group will continue to add value to its stakeholders by maintaining growth worldwide," he adds.

Related stories:
DigiCore reaps benefit of Debis deal
Debis contract a boon for DigiCore
DigiCore gets new MD
DigiCore earnings plummet on increased revenue

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