Vehicle tracking firm DigiCore Holdings will introduce a new generation of telematic devices and online software systems to the market in the first half of its new financial year.
The company this week released its results for the year to June and reported revenue 34% higher, to R712 million, while pre-tax profit gained 15%, to R78 million.
DigiCore shipped 40% more devices and related systems year-on-year, despite natural disasters such as the tsunami in Japan in March causing supply difficulties with some key component suppliers, it says.
The group expects to see organic growth in its existing markets and “good growth” from its fledgling operations in the new financial year. The company also anticipates small strategic acquisitions and joint ventures in select markets to contribute positively.
DigiCore says it has emerged from the recessionary periods of 2009 and 2010. Although revenue growth outstripped profit gains, the company says this is because it is spending on international expansion, research and development, integrating Minorplanet and upfront investments in projects.
Revenue growth was off the back of improvements in the fleet management business, and DigiCore benefited from the increased customer base after buying Minorplanet. It also saw higher demand for exports, which bolstered its manufacturing unit.
DigiCore bought 25% of UK-based MPS 2010, for an undisclosed amount, in the middle of last year. MPS was created by loss-making Minorplanet Systems and houses all of Minorplanet's UK business; some of its UK assets, including the customer base; and all of its intellectual property.
The unit has now been fully integrated and is profitable on a month-to-month basis, says DigiCore. The company incurred initial losses of more than R10 million on the unit.
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