Fleet management solutions company DigiCore Holdings` interim operating profit before depreciation declined 46.5%, although it says the results are satisfactory, given that the year-earlier period incorporated a bumper order from debis Fleet Management.
Despite assurances from DigiCore management, the company`s share price fell 7c or 17.5% on the JSE by midmorning.
Executive deputy chairman Nick Vlok says the pre-debis twelve-month period for the year to June 2000 reflects a turnover of R97.3 million, whereas the following six-month trading period incorporates the R150 million bumper order received from debis Fleet Management.
"To make an objective comparison, shareholders should take cognisance of the strong improvement in turnover levels, when comparing the most recent six months trading period, tallying up to R92 million at 31 December 2001, to the full June 2000 year," he adds.
Revenue for the six months to 31 December 2001 amounted to R92.06 million, compared with R173.27 million for the same period the previous year.
"Although no new major contracts were concluded during the review period, DigiCore will continue to derive revenue from the deinstallation, reinstallation and maintenance of the installed base of C-Track units over the next four years," Vlok says.
"This order, in addition to revenue generated from strategic partners such as debis, Imperial and other blue chip companies, creates a strong annuity income base, which will sustain future profits and expansionary growth."
He adds that C-Track and Co-Driver have become the de facto standard and have been integrated into the fleet management operational hub.
Vlok says that DigiCore Europe has turned a profit since the group acquired a 50% stake in July last year.
"The R3.6 million interest-bearing loan extended to the associate company has enabled management at DigiCore Europe to upscale their marketing drive and to appoint key people in pursuing larger transactions, such as the Hulsink supply contract."
DigiCore Europe has contributed R377 000 towards income on an investment of 20 000 Dutch guilders.
First Auto has been awarded a national tender to fit 55 000 government vehicles with fleet management systems over the next four years, and the long-awaited taxi tender is reaching finalisation.
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